RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/GC/M/92 
7 April 2005 
 
 (05-1409) 
General Council 
15 February 2005  
 
 
 
MINUTES OF MEETING 
 
Held in the Centre William Rappard  
on 15 February 2005  
 
Chairman:  Mr. Shotaro Oshima (Japan) 
  
Subjects discussed
: Page  
1. Iran – Request for Accession ................................................................................................... 1 
2. Accession of Serbia and Montenegro – Communication from the State Union..................5  
3. Montenegro – Request for accession .......................................................................................5  
4. Serbia – Request for accession................................................................................................. 7 
5. Report by the Chairman of th e Trade Negotiati ons Committee ..........................................9  
6. Work Programme on Small Economies – Report by the Chairman of the 
Dedicated Session of the Committee on Trade and Development ......................................11  
7. Review of the Exemption provided un der paragraph 3 of the GATT 1994 ......................13  
8. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 
1994 – Communication from Honduras and Guatemala – Statement by the 
Chairman....................................................................................................................... ..........15  
9. Procedure for the introduction of HS 2002 changes to schedules of tariff 
concessions using the Consolidated Ta riff Schedules (CTS) Database – Draft 
decision....................................................................................................................... ..............19  
10. Appointment of offi cers to WTO bodies...............................................................................19  
11. Rules of Origin – Harmonization Work Programme – Statement by the 
Chairman....................................................................................................................... ..........21  
12. Accession of Viet Nam – Chairmanship of the Working Party - Announcement 
by the Chairman ................................................................................................................ .....22  
13. Election of Chairperson........................................................................................................ ..23 
 
 1. Iran – Request for Accession (WT/ACC/IRN/1) 
1. The Chairman
 drew attention to the communication from Iran in document WT/ACC/IRN/1, 
requesting accession to the WTO Agreement pursuant to Article XII.  He recalled that the General 
Council had last considered this matter at its mee ting in December 2004.  In the light of the views 
expressed at that meeting, he had said that he w ould continue to consult with dele gations, and the 
Council had agreed to revert to this item at the present meeting.  On 11 February, he had held a WT/GC/M/92 
Page 2  
 
 further consultation meeting in order to see if ther e were any movements in positions that might allow 
Members to work towards a satisfactory resolution to  Iran's accession request.  He had invited to these 
consultations all delegati ons who had spoken on this subject at pr evious Council meetings.  It seemed 
clear from his consultations that a large part of th e membership continued to be supportive of an early 
and positive action on this request in the Council on th e basis of the provisions of Article XII of the 
WTO Agreement.  However, he had to report once ag ain that there still appeared to be no consensus 
at the present stage to accept Iran's request a nd to set up a working party for this purpose. 
2. The representative of the United States
 said that the issue of Iran's accession to the WTO 
continued to be under review by her authorities.  He r delegation had nothing to  add to the statement it 
had made at the December 2004 meeting of the General Council. 
3. The representative of Paraguay , speaking on behalf of the Informal Group of Developing 
Countries , thanked the Chairman for the consultations he had held on this subject.  These countries 
took note of the statement by the United States and trus ted that it would be able to complete its review 
rapidly, so as to be in a position to provide a positive reply to Iran's request for accession as soon as 
possible. 
4. The representatives of Venezuela , Turkey , Malaysia , Indonesia , China , Oman , Singapore , 
India  and Uruguay  associated their delegations with the st atement by Paraguay on behalf of the 
Informal Group of Developing Countries, and urged the Chairman to continue his consultations in 
order to reach an early resolution of this matter. 
5. The representative of Venezuela  said it was incomprehensible that almost ten years after Iran 
had first submitted its request for accession to the WTO, this issue was still on the Council's agenda.  
His delegation understood that there was an emergi ng consensus in favour of the accession of Iran, 
which, like other developing countries, had made signi ficant efforts in the fields of economic relations 
and trade that qualified it, in accordance with WTO ru les, for the establishment of a working party to 
examine its accession request.  Members had agreed to  establish working parties for other countries in 
situations similar to that of Iran, and were about to adopt identical decisions with regard to other 
requests on the present Council's agenda.  He recalled Ministers' statement in paragraph 9 of the Doha 
Declaration with regard to the accession process:   "We therefore attach great importance to 
concluding accession proceedings as quickly as possible … ."  In this regard, Venezuela reiterated its 
support for Iran's legitimate request to enter the mu ltilateral trading system.  It was necessary to put 
aside considerations that were strictly political in nature.  Otherwise, the question arose as to whether 
the WTO Agreements were subject to unilatera l decisions.  Should this be the case, it would 
jeopardize the universal nature of the organization, as well as its credibility.  In the Doha Declaration 
Ministers emphasized in paragraph 10 that "[r]ec ognizing the challenges posed by an expanding WTO 
membership, we confirm our collective responsibility to  ensure internal transparency and the effective 
participation of all Members.  Wh ile emphasizing the intergovernmental  character of the organization, 
we are committed to making the WTO's operations mo re transparent … ."  The time had come to 
examine other options envisaged in the rules on decision-making within the organization and 
Venezuela urged the Chairman to keep these options  in mind as he continued consultations on this 
matter. 
6. The representative of Turkey  reiterated his delegation's hope that this long-overdue issue 
would be settled in due time on its own merits and in line with the spirit with which the organization 
was vested.   
7. The representative of Pakistan  joined in the statements by Ve nezuela and Turkey.  This issue 
had been pending for a long time and needed to be re solved without any further delay.  Pakistan urged 
flexibility and fairness in dealing with Iran’s request.  WT/GC/M/92 
 Page 3 
 
 
 8. The representative of Indonesia  said that this issue had been on the Council's agenda with no 
real progress for far too long.  His delegation ur ged the Member who still had a problem with the 
establishment of a working party to  examine Iran's request for accession to take the necessary steps so 
as not to degrade further the WTO accession  process.  Members had to uphold firmly the principle of 
accepting or rejecting a request for accession based on its individual merit, irrespective of differences 
on issues such as stage of development or political c onsiderations.  It was difficult to understand that 
Iran's request was still not acceptable to certain Memb ers.  The request itself fulfilled the standards 
that had been applied to other similar requests.  The process of Iran's accession to the WTO would not 
only bring a positive change to the WTO, but also to Iran's participation in the world trading system.  
Indonesia wished to stress that all countries applying  to join the WTO had to be treated in the same 
manner and be given equal opportunity to become a Member of the organization. 
9. The representative of China  said that although his delegati on would not repeat its well-known 
position on this matter, it wished to express again its serious concern about the way this item was 
being treated.  The early completion of a positive revi ew of this matter by the relevant Member would 
help resolve this long-pending issue. 
10. The representative of Cuba  said that her delegation had maintained continuous support for 
Iran's accession request, and regretted – and viewed with much concern – that this accession process 
was not making progress.  Cuba wished to reiterate that Members should not introduce into this issue 
elements that were not related to trade, and urge d the country that had difficulties with this accession 
request to take a decision urgently and to allow this process to go forward.  The principle of non-
discrimination was of paramount importance in th e WTO, and all accession processes had to be dealt 
with on an equal footing.  Cuba maintained its  support for Iran's request and for maintaining the 
accession process on the basis of WTO principles.  Her de legation wished to continue to participate in 
the consultations the Chairman was holding, in the h opes of arriving at a satisfactory solution to this 
issue. 
11. The representative of Oman  noted that Iran's request had been on the Council's agenda for a 
long time.  For several years Oman had repeatedly supported this request, and did not know how 
many more years it would have to do so.  The WTO as a world organization was losing credibility, and it was time to think seriously about finding a way to resolve this issue. 
12. The representative of th e European Communities
 noted that this matter had now been on the 
Council's agenda more than 15 times.  The Community had always supported Iran's request, fully supported it now, and wished to see it approved.  The Community's position on WTO applicants had 
been to treat each application on its own merits, i ndependent of political cons iderations.  Iran fulfilled 
the accession criteria of Article XII, and any deci sion on a request for accession should be made on 
the basis of objective economic criteria.  Other count ries that were in a lesser  state of readiness than 
Iran already had accession negotiations under way, or would soon.  The Community expected all 
Members to treat all applications in the same way.  Moreover, starting discussions on WTO accession 
with Iran would help promote reform in that count ry.  The basic WTO principles of transparency and 
non-discrimination were at the heart of good governan ce, which the Community wi shed to encourage.  
WTO involvement would also be beneficial to other peoples in the region, as an element to encourage and drive the process of economic and political reform in their countries.  His delegation regretted to 
hear at the present meeting that the United States w as still not able to agree to grant Iran's request.  
The Community urged the Chairman to continue the process of informal consultations in order to find 
a way out of the current deadlock. 
13. The representative of Singapore
 said he wished to underline that, as a matter of principle, 
Singapore strongly supported the objective of univer sal membership in the WTO, which was an 
important pillar of the rules-based multilateral tr ading system.  Any applicant who qualified for WTO 
membership should, upon satisfactory completion of the accession requirements, be admitted.  It was WT/GC/M/92 
Page 4  
 
 important that this principle be app lied consistently to all applicants.  Otherwise, the credibility of the 
WTO would be affected. 
14. The representative of India
 reiterated India's support for the early accession of Iran to the 
WTO, based on the principles of tran sparency and non-discrimination. 
15. The representative of Djibouti  said that as several delegations had pointed out, this issue had 
been on the Council's agenda for some time, and Members should now have reached a stage where 
they could agree to examine Iran's request.  Once Iran had been accepted into the organization, it 
would contribute to the proper functioning of the WTO system and would enhance the universality of the organization.  As some delegati ons had also said, in order for an organization to be universal, each 
Member should be able to see its interests and concerns met, once they had complied with the 
conditions for accession.  All Members should underst and these facts.  His delegation hoped that 
Iran's request for accession would not be on the Council's agenda much longer. 
16. The representative of Norway
 said that his delegation's point of departure was that any state 
or separate customs territory that fulfilled the criteria for membership laid down in the WTO 
Agreement, and that was willing and able to accep t the obligations incumbent upon Members of this 
organization, should be able to have its accession re quest referred to a working party.  For Norway, 
this was a systemic issue, independent of political issues per se.  Norway note d that the Chairman had 
consulted on this issue as mandated by the General Council, but so fa r without success.  Like others, 
his delegation urged the Chairman to  continue consultations with interested Members, with a view to 
advancing this issue. 
17. The representative of Switzerland  said he would not repeat statements he had made on this 
matter at earlier occasions.  Switzerland supported what  had been said by other speakers, in particular 
the European Communities and Singapore.  He endor sed the views in these statements even more, 
given that the eminent persons the Director-Gener al had entrusted with studying the WTO's future 
had, in their recent report, stressed the importa nce of timeliness in dealing with accession requests, 
and that such requests should be examined solely in trade terms and in light of the concessions or 
commitments the candidates were willing to make.1 
18. The representative of Uruguay  said that his Government supported a request for accession by 
any country that complied with the provis ions stipulated in the WTO Agreement. 
19. The representative of Chile  supported the statements by all of the previous speakers who had  
supported Iran's accession to the WTO.  Chile urged the Chairman to continue his consultations so as 
to reach consensus on this issue.  There were many ways to measure an organization's credibility.  In 
the area of accessions, if Members continued along th e track they were currently on, the organization 
would receive very poor marks for credibility. 
20. The representative of New Zealand  said his delegation had particip ated in the consultations on 
Iran's application for accession.  It had been clear then, as it was now, that there was no change to the 
present stalemate and the absence of consensus.  Like others who had sp oken, his delegation too 
believed that any country meeting the requirement s of Article XII should have the opportunity to 
begin the accession process.  New Zealand believed st rongly in the importance of the globality of the 
multilateral trading system, and wished to see all of  its bilateral trading relationships governed by 
multilateral rules.  As such, it regretted that in the present case there was still no opportunity to begin 
the essential process of bringing Iran into the mu ltilateral trading system, and encouraged the 
Chairman to continue his work. 
                                                      
1 "The Future of the WTO – Addressing institutional challenges in the new millennium – Report by the 
Consultative Bard to the Director-General Supachai Panitchpakdi".  WT/GC/M/92 
 Page 5 
 
 
 21. The Chairman  said that while a significant part of the membership was supportive of an early 
and positive action on this request, once again there was no consensus at the present stage to accept 
Iran's request.  He trusted that, in view of the ma ny statements at the present meeting, his successor as 
Council Chair would take this matter up in consulta tions with delegations befo re the next meeting of 
the General Council. 
22. The General Council took note  of the statements. 
2. Accession of Serbia and Montenegro – Communication from the State Union 
(WT/ACC/SCG/3 and Add.1) 
23. The Chairman  drew attention to the communication from the State Union Serbia and 
Montenegro signed by the Minister for Foreign Economic Relations of Serbia and Montenegro 
(WT/ACC/SCG/3), and to the related communication of 1 February circulated as an Addendum to 
that document.  He recalled that the General C ouncil had established a Working Party to examine the 
application for WTO accession from the Federal Republic of Yugoslavia at its meeting in February 2001.  Following the promulgation and ad option of the Constitutional Charter of Serbia and 
Montenegro in 2003, through which the name of th e State of the Federal Republic of Yugoslavia had 
been changed to "Serbia and Montenegro", the Wo rking Party had been renamed the Working Party 
on the Accession of Serbia and Montenegro by the Ge neral Council at its meeti ng in February 2004.  
The General Council had taken note th at in all other respects, the conditions under which the Working 
Party had been established, and its terms of reference, remained unaffected.  He noted that although 
the usual background documentation for the work of the Working Party had been circulated, the 
Working Party had never met. 
24. The communication in document WT/ACC/SCG/3 informed Members that the Government 
of the Republic of Serbia and the Government of  the Republic of Montenegro had now decided to 
apply individually and separately for accession to the WTO.  At the level of the State Union, the 
Council of Ministers of Serbia and Montenegro  had taken note of the decisions of the two 
Governments, and confirmed that the Republic of  Serbia and the Republic of Montenegro possessed 
full autonomy in the conduct of th eir external commercial relations.  Furthermore, in the light of the 
individual applications for WTO membership, the C ouncil of Ministers of Serb ia and Montenegro had 
requested that the application lodged by the Fede ral Republic of Yugoslavia in 2001 be considered 
withdrawn.  Clarifications with regard to the le gal relationships, in areas relevant to WTO accession, 
which exist under the current constitutional arrange ments among the Union and its two constituent 
Republics, had been provided in document WT/ACC/SCG/3/Add.1. 
25. He suggested that, given these circumstances, the mo st logical approach would be to deal first 
with the existing Working Party on the Accession of  Serbia and Montenegro before considering the 
new applications under Items 3 and 4 of the present C ouncil's Agenda.  Accordingly, he proposed that 
the General Council take note of the communications from the State Union Serbia and Montenegro in 
document WT/ACC/SCG/3 and Add. 1, and agree to  dissolve the Working Party on the Accession of 
Serbia and Montenegro with immediate effect. 
26. The General Council took note
 of the statement and so agreed . 
3. Montenegro – Request for accession (WT/ACC/CGR/1) 
27. The Chairman  drew attention to the communication from the Republic of Montenegro in 
document WT/ACC/CGR/1, requesting accession to the WTO Agreement pursuant to Article XII.  He 
recalled that under Article XII of the WTO Agreement, accession to the WTO was open to "any State 
or separate customs territory possessing full autonom y in the conduct of its external commercial 
relations and of the other matters provided fo r in this Agreement and the Multilateral Trade WT/GC/M/92 
Page 6  
 
 Agreements."  The communications from the Stat e Union Serbia and Montenegro in document 
WT/ACC/SCG/3 and Add.1 – which had been cons idered under the previous Agenda item – 
confirmed that the Republic of Montenegro:  (i) ma intained a customs and trade regime separate from 
that of the Republic of Serbia;  (ii) possessed full autonomy in the conduct of its external commercial 
relations;  and (iii) intended to undertake all the obligations associated with WTO membership and to 
be responsible to the WTO Members for its fulfilmen t of these obligations.  Consultations carried out 
by the Secretariat on his behalf indicated broad acceptance among the membership of the decision of the Government of Montenegro  to apply for accession pursuant to Article XII of the WTO 
Agreement.  The support for Montenegro's applic ation was based on the understanding that the 
conditions stipulated in Article XII would be a dhered to during the accession process, and that the 
Republic of Montenegro would be fully responsible  for the implementation of obligations arising 
from accession to the WTO. 
28. As the current constitutional structure of Se rbia and Montenegro granted international 
personality to the State Union Serbia and Monteneg ro, it was also understood that for the purposes of 
accession to the WTO, the Republic of Montenegro w ould be considered a separate customs territory.  
Accordingly, he proposed for Members' consider ation that the General Council agree to establish a 
working party to examine the request with the foll owing standard terms of reference and composition: 
 Terms of Reference
: 
  "To examine the application of the Govern ment of Montenegro to accede to the WTO 
Agreement under Article XII, and to submit to  the General Council recommendations which 
may include a draft Protocol of Accession." 
  Membership
: 
  Membership would be open to all Members indicating their wish to serve on the Working 
Party.   
  Chairmanship
: 
  In keeping with customary practice, the Ge neral Council would authorize its Chairman to 
designate the Chairperson of the Working Pa rty in consultation with representatives of 
Members and with the representative of Montenegro. 
 29. The General Council agreed
 to establish a Working Party w ith the terms of reference and 
composition as read out by the Chairman.  
30. The Chairman  then invited the delega tion of Montenegro to co nsult with the Accessions 
Division of the Secretariat as to the further procedur es, and in particular with regard to the basic 
documentation to be considered by the Working Party.   He also invited Montenegro, on behalf of the 
General Council, to attend meetings of the Gene ral Council and, as appropria te, meetings of other 
WTO bodies as an observer during the period when the Working Party was carrying out its work. 
31. The representative of Montenegro , speaking as an observer , expressed her Government's 
gratitude for the action just taken, which had cl eared away the barriers to the rapid accession of 
Montenegro to the WTO – barriers which had prev ented significant progress for the past three years 
and more.  During that time, her Government ha d worked a lot on these issues, and intended to 
continue its work on economic reforms, as an integral part of its European integration process.  One of 
the priorities of the economic reform agenda in Mo ntenegro was accession to the WTO.  A great deal 
of preparatory action had been taken to reform Montenegro's legal system and to bring it into 
conformity with the WTO, and most of the basi c documentation necessary for consideration by the  WT/GC/M/92 
 Page 7 
 
 
 Working Party had already been prepared.  She w as pleased to inform Members that her Government 
had recently adopted the memorandum on the foreign trade regime of the Republic of Montenegro 
and had drafted additional reports  and documents.  Within the ne xt few days, this memorandum 
would be officially submitted.  Her delegation hoped and belie ved that this would be the first step in a 
rapid accession process, and her Government pledged to  make efforts to that end.  Her Government 
expected that the accession pro cess of Montenegro, which was a small country, would be speeded up, 
particularly after the full endorsement of the Europ ean Union's twin track approach to negotiation of 
the Stabilization and Association Agreement on the road  to Montenegro's membership in the EU.  Her 
delegation looked forward to beginning the dialogu e with Members that was at the heart of the 
accession process, and to becoming a WTO Member in the shortest possible time. 
32. The representatives of the European Communities  and Croatia  (on behalf of the informal 
group of CEFTA-plus countries ) welcomed the establishment of a working party to examine 
Montenegro's request for accession.2 
33. The General Council took note  of the statements. 
4. Serbia – Request for accession (WT/ACC/SRB/1) 
34. The Chairman  drew attention to the communication fr om the Republic of Serbia in document 
WT/ACC/SRB/1, requesting accession to the WTO Agre ement pursuant to Article XII.  He recalled 
that under Article XII of the WTO Agreement, a ccession to the WTO was open to "any State or 
separate customs territory possessing full autonomy in the conduct of its external commercial 
relations and of the other matters provided fo r in this Agreement and the Multilateral Trade 
Agreements."  The communications from the Stat e Union Serbia and Montenegro in document 
WT/ACC/SCG/3 and Add.1 – which had been consid ered under a previous Agenda item – confirmed 
that the Republic of Serbia:  (i) maintained a customs and trade regime separate from that of the 
Republic of Montenegro;  (ii) possessed full auto nomy in the conduct of its external commercial 
relations;  and (iii) intended to undertake all the obligations associated with WTO membership and to 
be responsible to the WTO Members for its fulfilmen t of these obligations.  Consultations carried out 
by the Secretariat on his behalf indicated broad acceptance among the membership of the decision of 
the Government of Serbia to apply for accession pur suant to Article XII of the WTO Agreement.  The 
support for Serbia's application was based on the understanding that the conditions stipulated in 
Article XII would be adhered to during the accession process, and that the Republic of Serbia would 
be fully responsible for the implementation of ob ligations arising from accession to the WTO. 
35. As the current constitutional structure of Se rbia and Montenegro granted international 
personality to the State Union Serbia and Monteneg ro, it was also understood that for the purposes of 
accession to the WTO, the Republic of Serbia woul d be considered a separate customs territory.  
Accordingly, he proposed for Members' consider ation that the General Council agree to establish a 
working party to examine the request with the foll owing standard terms of reference and composition: 
 Terms of Reference : 
 
 "To examine the application of the Government  of Serbia to accede to the WTO Agreement 
under Article XII, and to submit to the Gene ral Council recommendations which may include 
a draft Protocol of Accession." 
 
                                                      
2 These statements were made under the next Age nda item, "Serbia – Request for Accession", and are 
reflected accordingly in the minutes. WT/GC/M/92 
Page 8  
 
  Membership
: 
  Membership would be open to all Members indicating their wish to serve on the Working 
Party.   
 
 Chairmanship
: 
  In keeping with customary practice, the Ge neral Council would authorize its Chairman to 
designate the Chairperson of the Working Pa rty in consultation with representatives of 
Members and with the representative of Serbia. 
 
36. The General Council agreed
 to establish a Working Party w ith the terms of reference and 
composition as read out by the Chairman.  
37. The Chairman  then invited the delegation of Serbia to  consult with the Accessions Division of 
the Secretariat as to the further procedures, and in pa rticular with regard to the basic documentation to 
be considered by the Working Party.  He also i nvited Serbia, on behalf of  the General Council, to 
attend meetings of the General Council and, as a ppropriate, meetings of other WTO bodies as an 
observer during the period when the Working Party was carrying out its work. 
38. The representative of Serbia , speaking as an observer , said his authorities were convinced that 
the multilateral trading system embodies in the WTO had much to contribute to global economic growth, development and increasing employment.  Serbia recognized the importance of the WTO in 
creating this multilateral trading system, and wi shed to emphasize the importance it placed on its 
accession to the WTO.  Serbia's WTO membership a nd its accession to the European Union were not 
just prime foreign policy objectives, but also provided criteria that would serve as guidelines and inspiration for assessing the political and economic re forms within Serbia.  It was of particular 
importance for Serbia to become a WTO Member as soon as possible, as well as to conclude the 
Stabilization and Association Agreement with the EU in the course of 2006.  He wished to reiterate 
that Serbia was committed to a swift and full inte gration into the multilateral trading system and to 
regional cooperation with its neighboring countries , based on the same principles.  Serbia had 
achieved remarkable progress in its bilateral rela tions with its neighbors – Albania, Bosnia and 
Herzegovina, Bulgaria, Croatia, Macedonia, Moldova and Romania.  This had been achieved through 
a network of free-trade agreements signed in 2004,  which had been drafted in full compliance with 
WTO provisions, in order to stimulate trade, investment and genera l economic development 
throughout the region.  The average share of th ese seven neighboring countries in Serbian exports 
amounted to 35 per cent, and to about 10 per cent of Serbia's imports. 
39. He also wished to draw attention to some  of the main features of the present economic 
situation in Serbia.  First, the Serbian Governme nt was firmly committed to overall economic, social 
and institutional reforms aimed at a competitive mark et economy, including an intense privatization 
process.  Serbia's GDP in 2004 had increased by ei ght per cent, and agricultural production by 12 per 
cent, compared to 2003.  Annual inflation in 2003 had been at a level of 13.7 per cent.  Foreign Direct Investment in 2004 had amounted to around US$1 bil lion.  Serbia had the lowest corporate profit tax 
rate in Europe, at 10 per cent.  Foreign trade a nd foreign investment regimes had been deregulated, 
liberalized and simplified.   Significant autonomous internationa l trade liberalization had been 
undertaken in the last three years – an average customs rate of 14.3 per cent had been decreased 
almost by half.  He wished particularly to under line that Serbia believed that the success of the DDA 
negotiations was crucial, as this would provide an opportunity to improve the multilateral trading 
system and to enhance confidence in it worldwide.  Serbia sincerely believed that its accession to the 
WTO would be a thorough and challenging process, not  extended in time, and beneficial to all.  
Serbia's accession to the WTO would enable it,  on the one hand, to benefit from broad trade 
liberalization and, on the other, to contri bute to the universal success of the WTO.  WT/GC/M/92 
 Page 9 
 
 
 40. The representative of the European Communities  warmly welcomed the representatives of 
Montenegro and of Serbia and thanked them fo r their important statements.  The Community 
welcomed the decision of the General Council to start accession negotiations with both Montenegro 
and with Serbia.  His delegation hoped that this  new endeavour would allow speedy and efficient 
negotiations.  Generally, the Community believe d that the WTO accession process would be very 
helpful for both Republics to undertake and drive forward reform at home in the perspective of 
integration into the international trading system. 
41. The representative of Croatia , on behalf of the informal group of CEFTA-plus countries3, 
welcomed the delegations of Montenegro and Se rbia and congratulated them on the Council's 
decision to start the negotiations for their respec tive accessions to the WTO.  This was the second 
time that these countries welcomed the start of negotiations on the accession requests of these two 
Republics, and they hoped that the accession process es that Montenegro and Serbia were embarking 
on would prove to be more efficient and expediti ous than the previous process.  These countries 
supported the decision of both Republics to pursue their accession to the WTO in two separate 
accession processes.  This decision re flected political and trade realities that could appropriately be 
addressed in this format when it came to WT O accession.  The CEFTA-plus countries maintained 
traditionally good trade and economic cooperation with both Republics, and in that respect welcomed 
the prospect of their future WTO membership.  They were confiden t that the adoption of WTO rules 
would assist both Republics in strengthening their trad e relations in the region, as well as with other 
Members, and would provide an excellent framework  for their further economic growth.  They were 
also confident that the persistence of these two delegations and their willingness to engage in the 
negotiations would result in accession processes that would prove to be quick and successful.  The 
CEFTA-plus countries wished both delegations all the best  in their journeys to join the organization.   
42. The General Council took note  of the statements. 
5. Report by the Chairman of the Trade Negotiations Committee 
43. The Chairman  recalled that at its first meeting in 2002, the Trade Negotiations Committee had 
agreed that it would report to each regular meeting of the General Council. 
44. The Director-General, Chairman of  the Trade Negotiations Committee , said the TNC had 
held its sixteenth meeting on 14 February 2005, which he was pleased  to report had been a productive 
and business-like meeting.  In his introductory statem ent at that meeting, he had been able to report 
that his recent contacts with Ministers had conf irmed that there was a high degree of political 
commitment to the process leading up to Hong Kong, and that Members needed an ambitious 
outcome by that Conference if the Round was to c onclude in 2006.  In this connection, he had 
undertaken consultations with dele gations prior to the TNC meeting on Members' objectives for 2005, 
looking to the Hong Kong Ministerial and beyo nd, as he had announced at the December TNC 
meeting.  His aim was to build a collective sense as soon as possible of what level of progress would 
be needed in each area by the Hong Kong Ministeria l Conference in order to attain an overall sense of 
balance.  These consultations had indicated there was a high level of convergence on the need for a 
substantial breakthrough in Hong Kong in five key areas:  modalities in agriculture;  modalities in 
NAMA;  a critical mass of market-opening offers in  services;  significant progress in areas such as 
rules and trade facilitation;  and a proper reflection of the development dimension. 
45. He had also detected a strong sense of commitmen t at every level to flesh out the frameworks 
contained in the July 2004 Decision of the General Council, to strike a balance across all subjects and 
to ensure that the negotiations contributed to de velopment.  The scale of the task and the time 
available for it implied that careful planning woul d be required if Members were to reach their 
                                                      
3 Bulgaria, Croatia, Macedonia and Romania. WT/GC/M/92 
Page 10  
 
 objectives.  He had warned participants that they had to get down to real negotiations in all areas – 
meaning real give-and-take – and that they had to do this now.  Achieving this would require a 
combination of hard work and flexibility here  in Geneva, good coordina tion with capitals, and 
ongoing periodic political intervention.  He had also pointed out that July 2005 had to be a marker in this process.  Working back from the Hong Kong Mini sterial Conference, by July Members had to be 
able to judge across the board whether they were on course for a significant outcome for Hong Kong.  
To allow this, Members would need to see the elem ents of the potential outcome product – or what 
some had called "first approximations" – emerging from the negotiating groups by early July at the 
latest.  However, he had underlined that these el ements had to be based on the results of real 
negotiations among Members. 
46. Finally, he had informed participants that he  was intensifying his already close coordination 
with the negotiating group Chairs and the General C ouncil Chairperson to help guide further progress.  
In addition, he would use successive meetings of the TNC and in the Heads of Delegation format to 
foreshadow the elements for July and their overa ll balance over the coming months.  He would also 
continue to use every opportunity to engage Ministers – both individually and when they gathered 
together on future occasions – on the key issues in  the negotiations in Geneva.  He had also 
underlined the importance of transparency and incl usiveness in the negotiating process, and the need 
to reduce the burden on smaller delegations as far as possible.  In sum, 2005 had started with a good 
atmosphere and a high level of political-level comm itment to achieving a substantial outcome at the 
Hong Kong Ministerial.  While continued impetus from the political level should help Members 
achieve this, there was no substitute for the Geneva process, and all had a lot of hard work before 
them.  If this commitment and this effort could be maintained and the focus kept on substance, he 
believed that the Hong Kong Ministerial could set th e stage for a successful conclusion of the Doha 
Round in 2006. 
47. The TNC had also heard oral reports from all the Chairpersons of the bodies established by it.  
These reports clearly showed there was still a need for the work to accelerate in most areas, especially 
in light of the timeline now ahead of Members.  The meetings over the next two to three months 
would be crucial to achieving the sense of balance across the negotiations that Members would need 
to see later on.  A large number of participan ts had made statements, reacting both to the 
Chairpersons' reports and to his introductory stat ement.  He was grateful for the interesting and 
thoughtful views that had been set out, as well as the attendance of a large number of senior capital-
based officials.  From what had been said, he fe lt that all were working under the same game plan, 
with a view to concluding the DDA by the end of 2006. 
48. Finally, he had made a further interim repor t to the TNC on his consultative process on all 
outstanding implementation issues under paragraph 12(b) of the Doha Ministerial Declaration, 
including on issues related to the extension of th e protection of geographical indications provided for 
in Article 23 of the TRIPS Agreement to products  other than wines and spirits.  This process was 
being undertaken in accordance with the July 2004  Decision of the General Council.  At the present 
stage, the work continued on two tracks, as he had re ported in December.  On the first track, covering 
all outstanding paragraph 12(b) implementation issues except the GI extension issue, the Chairpersons 
of concerned WTO bodies – who had agreed to act as his Friends – were continuing their 
consultations on his behalf.  Ther e continued to be a willingness among delegations to engage, and in 
some areas, there was continued hope to be able to find ways forward.  On the second track, which 
concerned the GI extension issue, DDG Mr. Thomps on-Flôres was also continuing his technical-level 
consultations on his behalf.  He, as TNC Chair, ha d been able to report a good level of involvement 
by delegations in this process, but had cautioned th at it clearly remained a difficult issue on which to 
make progress.  He again urged all delegations to make every effort to allow progress to be made on 
all the outstanding implementation issues, so that the mandate contained in the July General Council 
Decision could be respected.  WT/GC/M/92 
 Page 11 
 
 
 49. The representative of Rwanda , on behalf of the African Group , asked that the Group's 
statement at the February TNC meeting be in cluded in the records of the present meeting.4 
50. The representative of Benin , on behalf of the ACP Group , asked that the Group's statement at 
the February TNC meeting also be includ ed in the records of the present meeting.5 
51. The representative of Zambia , on behalf of the LDCs , asked that these countries' statement at 
the February TNC meeting also be includ ed in the records of the present meeting.6 
52. The General Council took note  of the Director-General's report and of the statements. 
6. Work Programme on Small Economies – Report by the Chairman of the Dedicated 
Session of the Committee on Trade and Development 
53. The Chairman  recalled that at its meeting in Febr uary and March 2002, the General Council 
took note of a framework and procedures for the conduct of the Work Programme on Small 
Economies, under which this Work Programme sh all be a standing item on the General Council's 
agenda.  The framework and procedures also pr ovided that the Committee on Trade and Development 
shall report regularly to the General Council on the pr ogress of work in its Dedicated Sessions on this 
subject. 
54. Mr. Clarke (Barbados), Chairman of the Dedicated Session of the Committee on Trade and 
Development , reported that there was an understanding of th e need for urgency in the deliberations of 
the Dedicated Session of the Committee on Trade and De velopment.  Since his most recent report, he 
had held a number of consultations and one info rmal meeting of the Dedicated Session, which had 
addressed the Work Programme on Small Economies.  That meeting had been held on 25 January.  
All were aware of the difficulties posed by the ma ndate in Paragraph 35 of the Doha Declaration.  
However, it was precisely these difficulties that Member s had first to resolve, before they could move 
ahead with this work.  Paragraph 35 required th at the WTO launch a work programme to examine 
issues relating to the trade of small, vulnerable ec onomies, and the General Co uncil had launched that 
Work Programme in March 2002.  He recalled that  the objective of the Work Programme was "to 
frame responses to the trade-related issues identifie d for the fuller integration of small, vulnerable 
economies into the multilateral trading system, and not to create a sub-category of WTO Members".  
He believed that the Doha Ministerial Declarati on honestly expected the membership to deliver 
something on this mandate, and time was running out. 
55. He had seen over the past year how the second objective of not creating a sub-category of 
WTO Members continued to frustrate any progress on the first part of the objective, which was to 
frame responses.  At the informal meeting of th e Dedicated Session on 25 January, he had begun to 
seek an understanding on a possible way forward.  Members had exchanged views based on three 
steps:  the first was to consider the use of charact eristics to identify what could be accepted as small, 
vulnerable economies, without naming any group of countries;  the second was to consider the trade-
related problems that could reasona bly be attributed to those characteristics, without naming any 
group of countries;  and the third was to frame responses to those trade-related problems, without 
naming any group of countries.  He had informed the 25 January meeting that he had consulted and 
was satisfied that the CTD could not create a sub-category of WTO Members, even if Members wanted it to.  However, he understood that th e General Council could respond to characteristics, 
provided it treated all economies that fit those characteristics equally.  The challenge was for 
Members to see if this approach, which focused on the characteristics without identifying any country, 
                                                     
 
4 See Annex 1. 
5 See Annex 2. 
6 See Annex 3. WT/GC/M/92 
Page 12  
 
 could help Members meet their mandate in time for the Sixth Session of the Ministerial Conference.  
Members would revisit these issues the following w eek at the formal meeting of the Dedicated 
Session scheduled for 21 February. 
56. The representative of Guatemala
, also on behalf of Bolivia, Honduras, Nicaragua, Paraguay 
and the Dominican Republic , said that the Council's July 2004 Decision regarding the Doha Work 
Programme reaffirmed the commitment of Members to address, as part of the work programme and 
pursuant to the mandate in paragraph 35 of the Doha Ministerial Declaration, "the trade-related issues 
identified for the fuller integration of small, vulnerable economies into the multilateral trading 
system" without creating a sub-category of WTO Me mbers.  In accordance with that mandate, the 
objective was to frame responses to trade-related problem s that had been identified, with a view to the 
fuller integration of small, vulnerable economies in to the multilateral trading system.  These countries 
wished to support fully the intensive work already done in this connection in the Dedicated Sessions 
of the Committee on Trade and Development under the direction of the Chairman of the CTD, aimed 
at forging ahead with the Work  Programme on Small Economies and presenting concrete results to 
Ministers at the next Ministerial Conference in Hong Kong, China in December 2005.  
57. The representatives of El Salvador , Cuba  and Jamaica  thanked the Chairman of the Dedicated 
Session for his report, for his tireless efforts to advance the Work Programme, and for the results 
achieved in the course of this important work. 
58. The representative of El Salvador  fully supported the statement by Guatemala, and fully 
supported continuing the work in the Work Progra mme on the basis of what the Chairman of the 
Dedicated Session had suggested. 
59. The representative of Cuba  said that the approach adopted by the Chairman of the Dedicated 
Session should enable Members to reach a satisfactory result in the light of the July 2004 package, 
and ensure success on this issue at th e Hong Kong Ministerial Conference. 
60. The representative of Jamaica  said he wished to acknowledge, in particular, the creative – and 
at the same time practical – approach the Chai rman of the Dedicated Session had outlined in 
addressing some of the difficult issues that had bede villed the Work Programme so far.  Like other 
issues of importance to developing countries, the Work Programme on Small Economies was well behind the original timeline set for meaningful pr ogress to be accomplished, and thus needed an 
injection of momentum.  Proposals had been tabled in the Dedicated Session, and Jamaica thanked the 
few Members who had responded posi tively and urged all Members to engage constructively in the 
time left to meet the timeframe set.  It was very important to bear in mind also, as Members sought to 
arrive at so-called "first approximations" by July, that the framework agreed  in July 2004 placed the 
trade-related issues of small and vulnerable economies in the context, as well, of the ongoing market 
access negotiations, and stated that these should be  addressed.  His delegation assured the Chairman 
of the Dedicated Session of Jama ica's continued support in seeking to achieve the fulfilment of the 
mandate set at Doha. 
61. The representative of Fiji
, also on behalf of Papua New Guinea and the Solomon Islands , 
associated these delegations with the status report by  the Chairman of the Dedicated Session of the 
CTD.  These countries called on the wider membersh ip to support the characteristics approach as a 
way forward in the Work Programme, and remained  committed to accomplishing credible results by 
the time of the next Ministerial Conference.   
62. The General Council took note  of the report by the Chairman of the Dedicated Session of the 
Committee on Trade and Development and of the statements.  WT/GC/M/92 
 Page 13 
 
 
 7. Review of the Exemption provided under paragraph 3 of the GATT 1994 (WT/L/600) 
63. The Chairman  recalled that paragraph 3(a) of the GATT 1994 provided an exemption from 
Part II of GATT 1994 for measures under specific mandatory legislation – enacted by a Member before it became a contracting party to GATT 1947 – which prohibited the use, sale or lease of 
foreign-built or foreign-reconstructed vessels in commercial applications between points in national 
waters or waters of an exclus ive economic zone.  On 20 Decemb er 1994, the United States invoked 
the provisions of Paragraph 3(a) with respect to sp ecific legislation that met the requirements of that 
paragraph.  Paragraph 3(b) of the GATT 1994 called for a review of this exemption five years after 
the date of entry into force of the WTO Agreemen t, and thereafter every two years for as long as the 
exemption was in force, in order to examine whet her the conditions which created the need for the 
exemption still prevailed.  The General Council last  considered this matter at its meeting in 
December 2003, at which it took note that under the two-yearly cycle provided for in paragraph 3(b) of GATT 1994, the next review would normally be he ld in 2005.  For the purposes of the conduct of 
the review in 2005, he proposed that Members pr oceed in a manner similar to that in 2003.  
Accordingly, he would invite all interested delegatio ns at the present meeting to speak for the record 
with regard to the review under the current cycle.  He would also invite interested delegations to 
submit comments and questions to the United Stat es regarding the operation of the legislation under 
the exemption, to which the United States would be  invited to respond.  These statements, questions 
and responses, together with the annual report provided by the US under Paragraph 3(c) of 
GATT 1994, would form the basis for the present year's  review.  For the purposes of the review, this 
matter would be on the agenda of subsequent General Council meeti ngs in the course of 2005 as the 
Chairman deemed appropriate, or at the request of any Member. 
64. The General Council would, furthermore, consider this matter again at its last meeting of the 
year.  At that meeting, the Council would take note of the discussions held in the course of the review 
until then, and take any other action it might agree on.  It would also take note that the subsequent 
review would normally be held in 2007.  Regardi ng the exemption, he invited Members to note that, 
as provided in paragraph 3(e) of GATT 1994, the exemption was without prejudice to solutions 
concerning specific aspects of the legislation cove red by this exemption negotiated in sectoral 
agreements or in other fora.  He then drew atte ntion to the annual report circulated by the United 
States in document WT/L/600. 
65. The representative of the United States
 said that her delegation stood ready to participate in a 
review of the exemption under paragraph 3 of GA TT 1994.  This was the fourth review of that 
exemption.  The United States had continued to provide Members with annual statistical reports 
pursuant to the requirements of paragraph 3(c) of  GATT 1994, including the most recent one before 
Members at the present meeting.  These reports pr ovided detailed annual reporting of vessel orders 
and deliveries from US shipyards, as required by para graph 3(c).  Her delegation recognized that there 
were differing views on the nature of this review , and would again be willing to organize informal 
consultations in which interested delegations w ould be free to ask questions and discuss issues 
without prejudice to their national positions.  The Un ited States would also continue to do its utmost 
to respond to questions put to it on a more formal basis. 
66. The representative of Japan  said his delegation wished to place emphasis on this review of the 
exemption provided under paragraph 3 of GATT 1994.  Du ring the previous review of the exemption, 
Japan had pointed out that the United States had included in its data non- commercial vessels which 
were not the object of the exemption.  Japan recogni zed that in the latest data provided by the United 
States, the annual statistical notification dated 4 February 2005 (WT/L/600), non-commercial vessels 
were largely excluded, and the data reflected the act ual situation of shipbuilding in the United States 
for the purposes of this review, to some extent.  It was necessary to study closely the aforementioned 
data, as well as other considerations, so as to examin e whether or not the conditions which had created 
the need for the exemption – which was a devia tion from the basic principles of the WTO – still WT/GC/M/92 
Page 14  
 
 prevailed.  With this in mind, Japan hoped that th e review during this cycle would be pursued in an 
effective way, and wished to participate in a positive manner. 
67. The representative of Norway
 said this was an important issue for Norway, as the exemption 
in essence made it impossible to sell ships to the Un ited States.  Thus, Norway had participated, and 
intended to continue to participate, actively in the review of this exemption.  The review should focus 
on the salient point of paragraph 3(b), which was the examination of whether the conditions which 
created the need for the exemption still prevaile d.  Members needed to move beyond discussing only 
the statistical information submitted by the United States under paragraph 3(c), and to address also the 
conditions for the exemption.  Norway was still in  the process of reviewing the recent statistical 
document provided by the United States. and therefore reserved its right to present questions on this 
document at a later stage.  However, Norway wish ed to note that in previous years, a number of 
questions had been posed by Members to the Unite d States, concerning both previous notifications 
and the effects of the legislation, and the answer s to these questions had not been satisfactory, in 
particular regarding the continued need for this exem ption.  Regarding the next practical steps in this 
process, Norway was willing to accept the offer of th e United States to have dedicated consultations 
on this matter, and looked forward to an early date  for such consultations.  At the same time, his 
delegation reserved its right to revert to this matter in the General Council. 
68. The representative of Australia  said he had listened carefully to the Chairman's comments on 
the process the latter had in mind for the conduct of the present year's review, and could broadly agree 
with the Chairman's proposal.  However, he w as saying this with a degree of apprehension and 
caution.  Australia attached the utmost importance to  this review process.  It appeared that Members 
were about to embark on a process that looked sim ilar to the most recent review in 2003 – a process 
that had not lived up to the expectations placed in it.  His delegation wished to see an improved, more 
substantive process in 2005, aimed at getting to the key systemic and commercial questions that were 
central to Australia's interests.  As his delegation had said many times on earlier occasions, this exemption was a significant derogation granted to the United States, and the least Members could 
expect in return was a rigorous process of review, one that hopefully would avoid some of the sterile 
exchanges of the past.  His delegation noted the Un ited States' offer of informal consultations, but 
would want to build on this and on the level of engagement evident  in 2003, if Members were going 
to have an effective review process in 2005.  Th e prime driver for Australia was its very strong 
commercial interests in accessing the US export ma rket in the maritime area.  The Jones Act 
effectively constrained this, including in areas of pr ime interest to Australia, such as cruise vessels 
and fast ferries.  Australia believed that si gnificant opportunities would otherwise exist for its 
exporters, were it not for this exemption.  His delegation therefore looked forward to a thorough 
review process in 2005, one in which there would be  full engagement from all sides to make a proper 
assessment of whether the ci rcumstances warranting the exemption under paragraph 3 of  GATT 1994 
really did continue to exist. 
69. The representative of the European Communities
 associated his delegation with the 
statements by Japan, Norway and Australia.  The Community intended to participate actively in the 
review exercise and would submit questions  to the United States in due course. 
70. The representative of Chile  associated his delegation with the statements by Japan, Norway 
and Australia.  Chile had a commercial and systemic inte rest in this issue, which had to be seen also in 
the light of the current negotiations on trade in ser vices, where Chile sought specific commitments for 
liberalized trade and investment in services. 
71. The representative of Korea  said his delegation did not curre ntly have any questions on the 
communication from the US, but wished to continue to participate in the review process and in 
subsequent informal consultations.  WT/GC/M/92 
 Page 15 
 
 
 72. The General Council took note  of the statements. 
8. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 1994 – 
Communication from Honduras and Guatem ala (WT/GC/85) – Statement by the 
Chairman 
73. The Chairman  recalled that this matter had been raised by Honduras and Guatemala at the 
Council meeting in December 2004, in pursuan ce of the Procedures for Negotiations under 
Article XXVIII adopted by the GATT Committee on Tariff Concessions on 10 November 1980.  In 
the light of the views expressed at that meeting and the requests for consultations made by Honduras 
and Guatemala, he had proposed that he reflect on how best to proceed on this matter and on possible 
ways forward in consultation with delegations, and that the General C ouncil revert to his matter at its 
next meeting, as appropriate.  He informed delegatio ns that on 2 February, he had held consultations 
to provide an opportunity for the Members concerned to  seek clarifications, to the extent possible, and 
to see if he, as Chair, could facilitate a satisfa ctory resolution to the concerns raised at the 
December 2004 Council meeting.  He had invited to these consultations a ll delegations who had 
spoken at the December Council, and had made clear that the consultations were without prejudice to 
any Member's rights under the WTO. 
74. It was clear from the consultations that this  matter involved both politically sensitive issues 
involving major trading interests that were being af fected, as well as substantive legal issues where 
the parties concerned continued to have strong diff erences with regard to market shares and the 
resulting rights accruing under WTO provisions.  It was also clear that there were several distinct and 
ongoing WTO processes relating to this matter, that each particular process needed to be given due 
consideration, and also that avenues beyond purely  legal accommodation could be explored in this 
context.  At the same time, the consultations he had been requested to hold had been focused only on 
the question of negotiating rights accruing under Articles XXIV and XXVIII of GATT 1994.  The 
consultations had produced a frank, and very useful, interactive exchange that had helped to clarify 
further the concerns raised at the December Counc il meeting, as well as the basis for the positions 
taken by the delegations concerne d.  Honduras and Guatemala had also renewed their calls for the 
Community to examine the communications they had sent it in support of their case, and both sides 
had expressed a readiness to explore the issues fu rther in bilateral cons ultations.  Although the 
consultations had not produced any conclusive way forward, he had exhorted all Members present to 
continue to reflect on how one mi ght move this matter forward. 
75. The representatives of Honduras , Guatemala , the Philippines , Uruguay , Colombia , Costa 
Rica, Panama  and the European Communities  thanked the Chairman for the consultations he had held 
on this matter. 
76. The representatives of Honduras , Guatemala , Ecuador , Uruguay , Costa Rica , and Panama  
requested that this item be maintained on the Council's  agenda to enable a solu tion to be found to this 
issue. 
77. The representative of Honduras  thanked the Chairman for his report to the Council further to 
Honduras's request concerning the non-recogn ition of rights under Article XXIV:6 and 
Article XXVIII of the GATT 1994 and on the basis of the 1980 Procedures for Negotiations under 
Article XXVIII (BISD 27S/26), proposed as guidelin es by the Committee on Tariff Concessions.  He 
wished to inform all Members that at the meeti ng convened by the Chairman on 2 February, in which 
all delegations interested in addressing this issue had taken part, Honduras had stated that the EC had 
still not contacted it to discuss the request Hondur as had made at the December meeting of the 
General Council.  Subsequent to the consultation meeting and taki ng into account the new elements 
arising within this process, as notified by th e EC in document G/SECRET/22/Add.1, Honduras had 
sent the EC a further communication dated 7 February, aimed at reserving rights and seeking WT/GC/M/92 
Page 16  
 
 clarification, as it had done in the past.  In that communication, Honduras had pointed out that two 
months had elapsed since the most recent Council m eeting, without the EC contacting his delegation.  
Honduras had also stated that during that period, the EC had sent the Secretariat a communication dated 31 January 2005 (G/SECRET/22/Add.1) notifying its proposal for a duty of 230€/t, seemingly with the aim of initiating the process established in the Annex to the Waiver Decision adopted at the 
Doha Ministerial Conference of 14 November 2001.
7  In this connection, he wished to point out that it 
was common knowledge that this Annex was designe d to ensure that consideration was given to 
Article XXVIII procedures before commencing the cons ultations and arbitration proceedings, and that 
for Honduras, one of the basic prerequisites for initiating Article XXVIII procedures was appropriate 
recognition of the claim of substantial interest, wh ich had not yet occurred.  His delegation insisted 
that Honduras's claim of substantial interest  be recognized and th at consultations under 
Article XXVIII be held before the process of implementing the Annex advanced any further. 
78. Honduras wished to place on record that at no time had it opposed compliance with the terms 
of the Annex.  On the other hand, it could not accept that the EC should disregard the requirements 
laid down in the GATT 1994 and in that Anne x.  Honduras based this assertion on the 1980 
Procedures for Negotiations under Article X XVIII and the Annex to the Decision of 
14 November 2001, that is:  (i) Paragraph 4 of  the Procedures allowed Honduras to refer to the 
General Council the claim which the EC had failed to recognize – i.e.  non-recognition of the right of 
substantial interest, it being understood that, fo r Honduras, the negotiations had not even begun.  
(ii) Paragraph 5 established that the parties should se nd to the Secretariat a joint letter to report on the 
outcome of each bilateral negotiation, along the lines of  the models established in the Procedures;  this 
requirement had not been fulfilled to date.  (iii) The Annex to the Waiver Decision adopted at Doha 
provided that Article XXVIII negotiations were to be concluded prior to the commencement of the 
procedure initiated by the EC in G/SECRET/22/Add.1. 
79. This reasoning was based on the obligations unde rtaken by the EC, and at the present meeting 
Honduras again had to insist on recognition of its clai m of interest, so as to achieve full compliance 
with what was agreed in Doha.  Lastly, he wi shed to inform Members that, further to its 
communication of 7 February, Honduras had had a meeting with EC officials the previous week to discuss this issue.  However, Honduras had not obtained the outcome it had been seeking.  Honduras's interest regarding this issue was very clear and ma nifest, to the extent that Honduras had referred the 
matter concerning the EC to a WTO panel.  The Pa nel had ruled in favour of Honduras, but eight long 
years had passed since then – from 25 September 1997 to date – and Honduras was still waiting for its 
rights to be restored.  Notwithstanding the a bove, a GATT panel had found that Honduras, Ecuador, 
Costa Rica, Colombia and Panama had been substan tial MFN suppliers of bananas to the EC market 
prior to the discriminatory regime introduced in  1993 ("EEC-Import Regime for Bananas", DS38/R, 
para. 10).  A WTO panel had later found that tho se same countries, again including Honduras, had 
been substantial MFN suppliers of bananas to the EC in 1994 ("EC – Bananas", WT/DS27/R, 
para. 3.3).  A small country such as Honduras, whic h believed in the multilateral trading system and 
had made major concessions as a result of the la unching of the Doha Round, considered it necessary 
to seek solutions to the problem of non-recognition of rights.  His delegation therefore asked the 
Council, first and foremost, to monitor developments  regarding its request by keeping the item on its 
agenda and by pursuing the consultation process. 
80. The representative of Guatemala
 thanked the Chairman for his report on an issue of the 
utmost importance to his delegation.  Guatemala shared the concerns expressed by Honduras.  
Unfortunately, to date, his delegation had not been formally contacted by the EC, and the situation 
remained unchanged.  Guatemala had to insist th at its rights under Articles XXIV and XXVIII of the 
GATT be recognized by the EC.  As his delegation had said on earlier occasions, both orally and in 
writing to the EC, and also in the General Council, th is issue was of interest to Guatemala, not only 
                                                      
7 WT/L/436 (also circulated as a Minister ial Conference document as WT/MIN(01)/15).  WT/GC/M/92 
 Page 17 
 
 
 from a trade standpoint, but also from a systemic point of view since, to date, the EC had not carried 
out this process in an inclusive or transparent manner.  For a small economy, such as Guatemala, 
keeping this item on the Council's agenda was one  of the few mechanisms available for the 
enforcement of its rights, and for this reason, it was vital to keep the item on the Agenda until its 
rights were duly respected.  He reiterated his country's  desire to participate in a constructive dialogue 
with the Community and to participate in any ki nd of consultations the Chairman undertook in the 
future. 
81. The representative of Brazil  said that, as his delegation had stated at the December meeting of 
the Council, it supported the request by Honduras a nd Guatemala.  The legal provisions involved had 
to be read in the light of their objective, and – as had been clearly stated in the Understanding on the 
Interpretation of Article XXVIII of the GATT 1994 – one of the objectives was to secure a 
redistribution of negotiating rights in favour of sm all and medium-sized expor ting Members.  Another 
important issue which had been raised by Honduras and Guatemala was that their substantial interests 
had to be examined in light of the market situati on that would have existed if the EC had not had in 
place for such a long time a discriminatory regime.  Ho wever, in addition, Brazil had also said it did 
not believe this was something that lent itself ex clusively to a legalistic approach.  There was a 
political context, which was the commitment in the Doha Declaration on small economies.  The issue 
before Members was whether they wished merely to  prove general principles that would continue to 
allow leeway for the largest trading partners to a llocate benefits, or whether they were committed to a 
problem-oriented approach that would really take in to consideration the needs of small economies.   
82. The representative of Ecuador  said that the arguments by both Honduras and Guatemala were 
important elements, not only from a legal, but also a systemic, point of view.  It was important that the 
Community respond to the interests of these countri es, and Ecuador therefore supported keeping this 
item on the Council's agenda and finding a solution. 
83. The representative of the Philippines  said that the consultations on this issue had been an 
important opportunity for the concerned delegations  to clarify their respective positions in a more 
focused environment.  As his delegation had said during the consultations, further discussions among 
the interested parties might be appropriate and should be encouraged, in order to arrive at a mutually 
satisfactory resolution of the concerns expressed, ta king into account the spirit and intent of the WTO 
Agreement to maintain a balance of commitments.  Regarding the specific interests of the Philippines, 
he wished to reiterate and incorporate by refe rence the points raised by his delegation at the 
20 October and 13 December meetings of the Genera l Council regarding its concerns and reservations 
about the process undertaken by the Community in re lation to the EU enlargement.  His delegation 
trusted that the minutes of these two meetings accurate ly reflected the points raised by the Philippines 
and the rights reserved by his Government. 
84. The representative of Uruguay  reaffirmed, as his delegation had done on previous occasions, 
its support for the clear position outlined by Hondur as and Guatemala on an issue which referred to 
the rights of these two Members, and which also affected the proper systemic functioning of the 
organization and involved products that were of tremendous importance to the economies of these two 
countries.  Uruguay hoped that recognition of the rights of these two countries would be rapidly 
ensured. 
85. The representative of Colombia  said that, as on an earlier occasion, his delegation reaffirmed 
that the request by Honduras and Guatemala was a lega l issue that was covered by provisions of the 
GATT 1994, Article XXIV:6, Article XXVIII and th e interpretative notes thereto, and the 1980 
Guidelines. 
86. The representative of Costa Rica  supported the requests by Guatemala and Honduras for the 
recognition of their rights, as set out by these dele gations to the EC regard ing the negotiations under WT/GC/M/92 
Page 18  
 
 Article XXVIII.  Costa Rica also supported the poi nts these delegations had made at the December 
Council meeting, and again at the present meeting.  His delegation also wished to thank the Chairman 
for the interest the latter had taken in this matter.   It was essential that the rights of Honduras and 
Guatemala be recognized in order to ma intain a balance in the negotiations. 
87. The representative of Panama
 supported the requests by Honduras and Guatemala on this 
important issue. 
88. The representative of European Communities  thanked Honduras, Guatemala and other 
delegations for their statements at the present mee ting.  As already stated at the December 2004 
Council  meeting on this same agenda item, the Community attached great importance to abiding by the WTO agreements, and thus ensuring that Memb ers were able to meet their obligations and 
exercise their rights.  He reiterated that, in r ecognizing and rejecting claims, the Community had 
based itself on WTO law and well- established practice.  The EC would not change or add to the rules 
of the WTO, nor did it intend to change the methodology for establishing and according supplying 
rights.  Moreover, supplying rights under Artic les XXVIII and XXIV:6 of the GATT depended on the 
particular situation of each individual Member, and were therefore inherently an issue between the 
Member modifying its Schedule and the Member claiming rights.  The Community was always ready 
to meet bilaterally with Members to explain its position on their claims.  Accordingly, it had discussed 
bilaterally with Honduras and with Guatemala the past week, in particular with respect to th eir claims 
for supplying rights for bananas, and hoped it had clarified the issue.  Should Guatemala and Honduras still continue to have speci fic concerns – which had become apparent at the present meeting 
– the Community stood ready to continue the dialogue with them. 
89. He wished to refer to one further important  and pertinent development since the Council 
meeting in December.  On 31 January 2005, the Community had transmitted to the WTO a 
notification concerning the modification of its con cessions regarding bananas by announcing the new 
proposed tariff.  This notification had been circulat ed to all Members on 1 February.  The notification 
constituted the announcement under the second indent of the Annex to the Decision of the Doha 
Ministerial Conference of 14 November 2001 con cerning the ACP-EC Partnership Agreement.  
Within a specified period of time from the notification,  any interested party, as defined in the Annex, 
could request arbitration.  The EC also considered that this notification satisfied the requirement of 
the second indent to this Annex, as it provided in formation on the methodology used for the rebinding 
of the EC tariff on bananas.  Th e Decision also provided for the pa rties to the Cotonou Agreement to 
consult with Members exporting to the EU on an MFN basis.  Accordingly, subject to finalizing the 
practical details, he wished to take this opportuni ty to announce that the EC and the ACP countries 
would hold such consultations hopefully in the c ourse of the following week. The Community would 
issue a communication very soon via the WTO to co nfirm this.  The Community continued to remain 
fully committed to finding a mutually satisfact ory outcome for all parties involved in the 
Article XXVIII negotiations on bananas and to its obl igations, notably as regards the entry into force 
of the new EC tariff-only regime on 1 January 2006. 
90. The representative of Guatemala
  said he wished to make a clarification.  As the Community 
had just said, on 11 February, Guatemala and the Community had held a bilateral meeting.  However, 
the purpose of that meeting had been exclusively for the Community to info rm Guatemala as to the 
methodology used for the rebinding of the banana  tariff.  At the beginning and throughout the 
meeting, Guatemala had clearly stated that the meeting was without prejudice to the rights it was 
invoking under Articles XXIV and XXVIII of the GA TT.  The Community had agreed to this, and 
had also accepted that the meeting would be held on the conditions Guatemala had outlined.  So far, 
no meeting with the Community had been held to discuss the present item on the agenda.  The 
bilateral meeting had been held to deal with a to tally different issue.  As his delegation had said on 
previous occasions, Guatemala's interest was not lim ited to just bananas, but included other products, 
such as honey, macadamia, nuts and coffee.  WT/GC/M/92 
 Page 19 
 
 
 91. The representative of Honduras  said that his delegation had noted the statement by the 
Community.  Once again, however, he wished to re quest, as his delegation had done at the previous 
General Council meeting, that Members clearly establish the basis or the rights involved, on which the Community was going to speak to Honduras in the fu ture.  Honduras also invited the Community to 
look again at the results of the panels which had given Honduras the rights of a substantial supplier, 
and to comply fully with the provisions of paragr aph 7 of the Understanding on the Interpretation of 
Article XXVIII, before starting a discussion of document G/SECRET/22. 
92. The representative of the European Communities
 said it was obvious from the present 
discussion, as it had been previously, that there wa s a difference of view between the Community and 
Honduras and Guatemala, as far as the recognition of  supplying rights was concerned.  However, as 
he had said on previous occasions, and had stated ea rlier at the present meeting, his delegation was  
totally open to any informal cons ultations with both of these countr ies and with any other country. 
93. The representative of Jamaica  welcomed the statement by the Community regarding 
consultations the following week, in which the Co mmunity and the ACP would participate.  Jamaica 
looked forward to those consultations, and had a clear interest in the level of tariffs on bananas.   
94. The representative of Honduras  asked all Members to reflect on what rights a small country 
like Honduras had if the multilateral system was on its side but one of the major trading partners did 
not respect or apply its rights.  It was important to look at this matter from this point of view, particularly since Members were involved in ne gotiations under the Doha Development Round.   
95. The Chairman
 proposed, in view of the statements, that he request his successor as Council 
Chair to take this matter up in consultations with delegations on an informal basis before the next 
meeting of the General Council, in order to find th e best way forward, and that the General Council 
revert to this matter at its next meeting. 
96. The General Council took note  of the statements and so agreed . 
9. Procedure for the introduction of HS 2002 changes to schedules of  tariff concessions 
using the Consolidated Tariff Schedul es (CTS) Database – Draft decision 
(G/MA/W/65/Rev.2) 
97. The Chairman  drew attention to the draft decision in document G/MA/W/65/Rev.2 regarding 
a procedure for the introduction of HS 2002 chang es to schedules of tariff concessions using the 
Consolidated Tariff Schedules Database.  This draft text had been the subject of long discussions in 
the Committee on Market Access, a nd had been approved by that Committee in December 2004.  He 
proposed that  the General Council adopt the draft decision in G/MA/W/65/Rev.2. 
98. The General Council so agreed .8 
10. Appointment of officers to WTO bodies 
99. The Chairman  said that in accordance with the Guid elines for Appointment of Officers to 
WTO Bodies approved by the General Council in D ecember 2002 (WT/L/510), he and his colleague, 
Mrs. Amina Mohamed (Kenya), the serving Chair of the Dispute Settlement Body, had conducted 
consultations with de legations on a slate of names for the appoi ntment of Chairs to the bodies listed in 
Groups 1, 2, 4 and 5 in the Annex to the Guide lines.  As he had announced at the December 2004 
General Council meeting, since the three working groups on the Singapore issues were inactive at the 
present time, they had not consulted regarding thei r chairpersons.  They had consulted delegations 
                                                      
8 The Decision was subsequently circulated in document WT/L/605. WT/GC/M/92 
Page 20  
 
 both individually and in groups, including throu gh group coordinators.  These consultations had 
included an informal open-ended Heads-of-Delegati on meeting on 10 February.  On the basis of these 
consultations, he was pleased to be able to info rm delegations that there was a consensus on the 
following slate of names: 
 
General Council 
  H.E. Ms. Amina Chawahir MOHAMED 
(Kenya) 
Dispute Settlement Body 
 
 H.E. Mr. Eirik GLENNE 
(Norway) 
Trade Policy Review Body 
  H.E. Mr. Don STEPHENSON 
(Canada) 
Council for Trade in Goods 
 
 H.E. Mr. Vesa Tapani HIMANEN 
(Finland) 
Council for Trade in Services 
  H.E. Ms. Claudia URIBE 
(Colombia) 
Council for TRIPS 
 
 H.E. Mr. CHOI Hyuck 
(Korea) 
Committee on Trade and  
  Environment  H.E. Mr. Shree Baboo Chekitan SERVANSING 
(Mauritius) 
Committee on Trade and 
  Development  H.E. Mr. Gomi THARAKA SENADHIRA 
(Sri Lanka) 
Committee on Balance-of- 
  Payments Restrictions  Mr. Víctor ECHEVARRÍA UGARTE 
(Spain) 
Committee on Regional Trade  
  Agreements  H.E. Mr. Ronald SABORÍO SOTO 
(Costa Rica) 
Committee on Budget, Finance  
  and  Administration 
 Mr. Jan-Meinte POSTMA 
(Netherlands) 
Working Group on Trade and  
  Transfer of Technology  H.E. Mr. Manuel Antonio J. TEEHANKEE 
(Philippines) 
Working Group on Trade, Debt and  
  Finance H.E. Mr. Kweronda-Ruhemba 
(Uganda) 
 
 100. These appointments would be made formally by the WTO bodies concerned at their 
subsequent meetings during 2005. 
101. The General Council took note
 of the statement and of the consensus on the slate of names for 
the appointment of officers.   WT/GC/M/92 
 Page 21 
 
 
 102. The Chairman , on behalf of the General Council, expressed sincere appreciation to the 
outgoing Chairpersons of all WTO bodies for their very dedicated work in chairing these bodies during the past year, particularly given the heavy work load all had faced in the lead-up to the 
adoption of the July package by the General Council.   Before concluding on this item, he recalled 
that, in accordance with Paragraph 7.3 of the Guid elines for Appointment of Officers to WTO Bodies, 
the outgoing Chairpersons of the Council for Trade in Goods and the Council for Trade in Services 
would normally conduct consultations to select Ch airpersons for the bodies established under the 
respective authority of the Councils that they chaire d.  Paragraph 7.3 of the Guidelines also provided 
that these Chairs should announce the start of thei r respective consultation processes at the February 
General Council, and work in close coordination in order to ensure the efficiency of the process and 
the balance mentioned in Paragraph 3.3 of the Guidelines. 
103. Mr. Brño (Hungary), Chairman of the Council for Trade in Services
, said that in accordance 
with the Guidelines referred to by the Chairman, he would start the consultation process for the 
appointment of chairpersons to the four subsid iary bodies under the Council for Trade in Services. 
This process would aim at reaching agreement on a bala nced slate of names to be proposed at the next 
meting of the Council for Trade in Services, which was scheduled for 23 February.  For this purpose, 
he would undertake consu ltations in coordination with the Chai rman of the Goods Council, and would 
make sufficient time available to meet with any interested Members.  Pursuant to the Rules of 
Procedure of the Council for Trade in Services (S/L/15), which had also been adopted by its subsidiary bodies, the election of the new chairper sons of the subsidiary bodies should take place at 
the first meeting of the year and should take effect at  the end of that meeting.  Given the fact that for 
the present year, the first meeting of the subsid iary bodies to the Services Council had taken place 
during the week of 7 February and thus prior to the present meeting, the election of the new 
chairpersons of the subsidiary bodies would have to  take place at the beginning of their next meeting. 
104. The Chairman
, in the absence the Chairman of the Goods  Council, and on the latter's behalf 
and request, said that the Goods Council Chair w ould also be starting consultations for the 
appointment of chairpersons to the bodies establis hed under that Council.  He would be carrying out 
this process with a view to proposing and agreei ng a balanced slate of names at the next CTG 
meeting, scheduled for 11 March.  He would make sufficient time available to meet with any interested Members and to hear their views and s uggestions, and would be sending a fax to all Heads 
of Delegations the following day, indicating his av ailability for this purpose.  Following that, he 
would conduct further consultations as necessary.  In order to ensure the efficiency of the process and 
the balance mentioned in the Guidelines, he w ould be working in close coordination with the 
Chairman of the Services Council.   
105. The General Council took note
 of the statements. 
11. Rules of Origin – Harmonization Work Programme – Statement by the Chairman 
106. The Chairman , speaking under "Other Business ", recalled that the Harmonization Work 
Programme for non-preferential rules of origin had been launched in July 1995 in the Committee on 
Rules of Origin (CRO), and that, due to the sheer  number and complexity of the technical issues 
involved, Members had been unable to conclude this work, even though the deadline for its 
completion had been extended several times .  As Members were aware, since July 2002, when the 
CRO had forwarded 94 core policy issues to the Ge neral Council for discussion and decision, this 
matter had been taken up at the Ge neral Council level.  The substan tive work had, since then, been 
pursued in informal consultations  conducted by the Chairperson of the CRO, at the request and on 
behalf of the Chair of the General Council.  As Members also knew, a further deadline of July 2005 for completion of this work was looming. WT/GC/M/92 
Page 22  
 
 107. The Chairperson of the CRO had recently reporte d to him that since 2004, a number of small-
group and open-ended consultations  had been held, and continuou s progress had been made on many 
product-specific rules of origin.  However, differi ng views on the "implications issue" remained a 
major stumbling-block to the progress of the Harmonization Work Programme.  On the basis of the report and advice he had received from the Chair of  the CRO – following consultations with Members 
of her Committee – he believed that, to move this work forward, this matter should be taken up in 
consultations by the Chairpersons of the Committees re lating to trade remedy measures, rather than in 
the origin context.  This change of work environment might provide a new opportunity in which experts on trade remedy measures, based on their ow n experience and expertise,  could negotiate this 
matter in a more focused manner.  With this in mind,  he informed Members that he proposed to take 
the following steps as a purely practical mean s to advance work on the Harmonization Work 
Programme, in view of the tight deadline Members were facing: 
 First, he would request the Chairpersons of the Committees on Anti-Dumping Practices, on 
Subsidies and Countervailing Measures and on Safe guards to take up the implications issue in 
consultations on his behalf with Members in their Committees as soon as possible, with a 
view to addressing the following questions, k eeping in mind the July 2005 deadline for 
completing negotiations on the 94 core polic y issues agreed by the General Council in 
July 2004: 
 (i) whether the harmonized rules of orig in should be applied to the Agreements 
on Implementation of Article VI of the GATT 1994, on Subsidies and Countervailing Measures or on Safeguards;  and 
 (ii) whether the harmonized rules of origin should be applied to the problem of 
circumvention of trade remedy measures. 
 Second, he would request the Chairpersons of these Committees to report on the outcome of 
their consultations to the Chair of the General Council before July 2005. 
 Third, he would request the Chairperson of the Committee on Rules of Origin to continue 
consultations on the 94 core policy issues on his behalf. 
The Council Chair would, of course, keep Memb ers advised of developments in this ongoing 
work, and delegations would have an opportunity  to hear a full report on the progress of the 
Harmonization Work Programme as a whole at the July Council meeting.    
108. The General Council took note
 of the statement. 
12. Accession of Viet Nam – Chairmanship of the Working Party - Announcement by the 
Chairman 
109. The Chairman , speaking under "Other Business ", informed Members that, following informal 
consultations among the respective Working Party members and the authorities of Viet Nam, and in accordance with usual WTO practice, it had been ag reed that Amb. Eirik Glenne (Norway) would 
replace the outgoing Chair, Amb. Seung Ho (Korea) .  On behalf of the Ge neral Council, he thanked 
Amb. Seung Ho for his long service in Chairing this  Accession Working Party since its establishment, 
and for the dedication he had continued to show to  this task following his departure from Geneva in 
1997.  Particularly noteworthy was that throughout these years, despite distances and other engagements, Amb. Seung Ho had made himself cons tantly available for the negotiations in Geneva 
and, where necessary, to advan ce Viet Nam's cause in capitals. 
110. The General Council  took note
 of this information.  WT/GC/M/92 
 Page 23 
 
 
 13. Election of Chairperson 
111. The Chairman , as the outgoing presiding officer of the General Council, said he wished to 
express four thank yous and make one small comment.   First and foremost, he wished to thank all 
representatives, and through them, their governments,  for allowing him the honour to serve them as 
General Council Chair, and for supporting him thr oughout the past 12 months in his activities.  
Whatever the General Council had achieved throughout the past year, the credit was due them, since 
this was a Member-driven organization.  Chairs, as so meone had once said, were at best midwives.  If 
the General Council had been the mother and the Ju ly package the child, Chairs, including himself, 
had been midwives, and all representatives could co llectively or individually claim paternity – and 
could prove it by DNA analysis, as he was sure th e package would have part of their DNA in it. 
112. Second, he wished to thank the Director-General  and the Secretariat.  He wished to thank 
Dr. Supachai very much for supporting him throughout the year.  Dr. Supachai had done an excellent job as Director-General leading Members through th ese past months, and had been instrumental as a 
lynchpin between the Geneva process and the capital-b ased political masters, through his travels and 
his direct phone calls, which had always brought the political masters and the Geneva process closer 
together and made them more integrated, which was,  of course, the basis for Members' achievements 
so far.  He also wished to thank the members of  the Secretariat – the DDGs, Directors, interpreters, 
officers, secretaries, s ecurity staff, translators and everyone  else, who were a wonderful group of 
people.  As he had said at the end of July, he  had never seen such a dedicated public service.  
However, his special thanks went to the Direct or of the Council and TNC Division, and all the 
members of that team, who had had the misfortune of serving him twice – first as DSB Chair and then 
as Council Chair. 
113. Third, he wished to thank the Japanese Mi ssion and Government – the Government for 
allowing him to do what he thought was necessary to ca rry out his duties as Chair, and his team at the 
mission, under Mr. Kitera, who had done a great job representing Japan while he himself had not been 
able to do that.  Since he worked on UN matters as well, he wished to thank all the members of the 
Japanese mission, who had done very well.  In fact, they had done so well that Tokyo realized that the 
permanent mission could function just as well, if not better, without him at the helm, and had decided 
to recall him.  There had to be some message in this to all those who aspir ed to become Chairs.  
Fourth, he wished to thank his friend and collea gue, Ambassador Katsuhiko O ku, who had been killed 
on his way to Tikrit from Bagdad while serving in Iraq over a year earlier.  He had mentioned the latter on assuming the Council chairmanship.  Amba ssador Oku had always been a good friend, had 
always encouraged him when they were working to gether, and had been his source of inspiration for 
public service.  He once again wished to thank him for his spiritual encouragement when he had had 
some difficult moments and had sought his moral support.  He wished to dedicate whatever he had done in the past year to him. 
114. Finally, he said that one of the issues th at was much discussed was development.  The 
previous day, in the TNC meeting, many had voiced  their views on this subject.  While its importance 
was not disputed, he was concerned by the way some  addressed this issue by juxtaposing trade against 
development.  He did not believe that there was any dichotomy between trade and development.  He 
believed that trade was development.  It was very important that Members of this organization shared 
this basic notion that trade was development.  He was saying this as someone who represented a 
country that had based its basic policy on this notion and on its conviction and commitment to the 
multilateral trading system and the WTO, and to th e GATT which had preceded it.  Thus, he had been 
very pleased to have been able to serve this or ganization, albeit in a very small way, because 
personally he was a free trader.  He had come to th e end of his tenure, and this was his last day as 
Chair.  It also happened to be his last month as Amba ssador to the WTO, and could be his last year as 
a trade negotiator for Japan.  As someone had once sai d, "old trade negotiators never die, they just WT/GC/M/92 
Page 24  
 
 fade away".  However, the rules-based multilateral tr ading system was forever.  It was eternal, and 
long live the WTO. 
115. The General Council then unanimously elected
 Ms. Amina Mohamed (Kenya) to the Chair. 
116. The Director-General  said he wished to put on record on behalf of the Secretariat and the 
Members his deepest gratitude for the outgoing Chai r's very significant contribution as Chairman of 
the General Council.  His hard work and commitmen t to the WTO had been impressive and would be 
remembered by all.  The outgoing Chair had injected into this posit ion characteristics that were much 
needed and valued:  tact, diplomacy, patience and firmness.  He wished to pay respect to those 
qualities.  During his Chairmanship, many things had b een achieved, not the least the July package.  It 
had been to a large extent thanks to the outgoi ng Chair's unwavering commitment that Members had 
been able to use Cancún as a turni ng point in the negotiations and move forward to where they were 
now.  He also wished to highlight that in all de liberations, the outgoing Chair had always emphasized 
the need to be as inclusive and transparent as po ssible.  He was sure that all delegations had 
appreciated this. 
117. He hoped that the outgoing Chair would remember how they had worked together, in the 
pursuit of their common values and objectives, and th at this very cooperative relationship had set a 
model for the relationship between the Chairman of  the General Council and the Director-General.  
He had appreciated this enormously.  On behalf of himself and the WTO Secretariat, he wished to say 
that it had been a great personal pleasure to have wo rked with the outgoing Chair, and to wish him all 
success and happiness in future.  Wi th these words, he wished to pr esent him with the gavel, which 
the latter had used so well. 
118. The newly-elected Chairman  expressed her personal appreciation to the Members for the 
honour to Africa, to Kenya and to herself in electing her Chair of the General Council.9  She felt 
especially humbled to be the first woman to Chair the Council, and was grateful for this privilege.  
She wished to make a few remarks about issues be fore the Council, Members' work together, and the 
year ahead, and said that this was probably the only  speech she would make in the Council.  However, 
the starting point was the debt of gratitude owed the outgoing Chair by the General Council for his 
stellar leadership.  Since the launch of the DDA, 2004 had been a critical year, perhaps more than any 
other year.  Members had been close to the loss of the Doha Round.  The General Council, under the 
quiet but solid technical leadership of the outgoing Chai r, had risen to the challenge to ensure that the 
DDA was not abandoned either because of Members' frust ration with the speed of progress, or due to 
entrenched positions before the July package.  Th e outgoing Chair had now joined the pantheon of an 
illustrious list of General Council Chairs who, when confronted with the challenge, had risen to the 
occasion, had persevered and had produced concrete results and progress in the work of the Council. 
On behalf of the Council she wished to  convey Members' gratitude to him. 
119. The organization would be challenged in the comi ng year.  Difficult decisions would have to 
be made, and all knew it.  Members could not afford  distractions, paralysis, drift or controversy.  
Neither could they allow themselves to be stymie d by perceived irreconcilable differences.  They 
were at an historic juncture.  1999 had been a sim ilarly tough year.  She believed that together, with 
the necessary goodwill and resolve, Members would be able to respond to the challenges they would 
face, and to the problems they had to solve.  She was ready to play her part and exercise the 
leadership necessary on Members' behalf, in the hard and painful decisions that needed to be taken in 
2005.  However, progress and success could only be achieved collectively, and in several areas, 
Members would have to bite the bullet.  They were  faced with three major challenges in 2005:  first, 
the organization and preparation of the Sixth Ministerial Conference in Hong Kong, China, in December;  second, to make substantive progress in agriculture, non-agricultural market access, 
                                                     
 
9 The full text of the Chair's statement was su bsequently circulated as document WT/GC/88.  WT/GC/M/92 
 Page 25 
 
 
 services, rules and development issues before the su mmer break;  and third, in the shortest possible 
time, to elect a new Director-General from the four excellent candidates. 
120. However, beyond these immediate tasks there were  the legitimate expectations that the WTO 
had to show from the results of its work – and not merely from a statement of its rules, goals, 
objectives and agenda – that it could continue to rai se the level of its contributions to the over-arching 
goals of international cooperation, to achieve th e Millennium Development Goals, particularly for 
poverty reduction.  Much had been achieved a nd much accomplished in the multilateral trading 
system, but as all knew, much more remained to  be done.  The inescapable dilemma for the WTO was 
that because it was a result-oriented organization w ith outcomes directly affecting various spheres of 
national economic life, the organi zation was and would be judged by real outcomes on a success and 
failure yardstick.  It was difficult to escape this  dilemma.  However, perh aps the absence of dullness 
and the lack of respite for the WTO was not such a bad thing after all.  She recalled one of her favourite poets, Alfred Lord Tennyson,  who in his poem "Ulysses" wrote, "How dull it is to pause, to 
make an end, to rust unburnished, not to shine in u se as tho’ to breathe were life.  Life piled on life 
were all too little, ….".  He had gone on to  write, "Tho’ much is taken much abides". 
121. As an organization, Members were challenged,  and in responding to those challenges they 
needed to set clear, achievable priorities and provid e the collective leadership to achieve them.  The 
cardinal priority was to intensify their work an d accelerate their efforts on the DDA negotiations, with 
a view to completing the negotiations as early as possible.  At the same time, within the DDA negotiations Members needed to acknowledge that there were areas of urgency which themselves 
were linked to broader global priorities.  Libera lization in agriculture, NAMA, services and trade 
facilitation were vital and indispensable.  They were  linked to broader nationa l and global objectives 
of growth, poverty reduction and development. The Marrakech Agreem ent clearly recognized, and the 
Doha Declaration reaffirmed, the role of multilatera l trade in the growth of economies.  Being from a 
developing country herself, she recognized the im portance and potential of free trade in achieving 
economic growth and reduci ng poverty.  This made the WTO's role both central and pivotal.  Within 
the framework of the rules and disciplines of the or ganization, and having re gard to the necessity for 
significant improvements in market access, Members needed to respond better to the needs of the 
weakest, the poorest and the most vulnerable among the membership.  If they did not, questions would remain about the development meaningfulness and relevance of the organization.  The G8, the 
recent World Economic Forum, and other internati onal fora had identified Africa as a priority. 
122. Members needed too to think more clearly and more creatively about the organization's 
contribution to poverty reduction in Africa, and to join and contribute to these efforts more 
significantly.  The WTO was and had to remain  part of the broader international agenda.   A lot of its 
efforts would turn on progress in the agricultu re negotiations, within which cotton and other 
agricultural commodity sectors were being treat ed, and which had huge potential development 
dividends for Africa and LDCs.  What Members already knew, and what sometimes needed 
reaffirmation, was that systemic responses to the development and the trade aspects of the Sectoral 
Initiative on Cotton – and, more broadly, to the improvement of trade and development opportunities 
for commodities – were key tests of the developm ent responsiveness of the WTO, as seen by Africa 
and the LDCs. 
123. In focusing on the priorities of the DDA negotia tions, Members needed to keep their eyes on 
the wider objectives of international cooperatio n and coherence among the principal economic 
institutions for growth, poverty reduction, developm ent and environmental protection.  These were the 
key objectives for the current generation, but they  could not be simply stated as objectives.  The 
results of Members' work and the output of this or ganization needed to be more directly related to 
specific outcomes.  The WTO, World Bank and IMF had key roles to play.  Without improved coordination and coherence among these organizations , progress would be severely lacking in issues 
on the global agenda.  No Member could go it alone.  There was no greater challenge in the world WT/GC/M/92 
Page 26  
 
 today than poverty reduction, because, among othe r reasons, poverty reduction would contribute to 
democratization and to the fight against terrorism , and would give hope, re ducing the desperation, 
hopelessness and misery, which sometimes – but not in all instances – drove individuals and fringe groups to hatred, violence and flagrant abuses of human rights.  Growth from trade liberalization 
would also contribute significantly to the fight against HIV/AIDS and diseases such as malaria, TB, 
polio and others.  It had to be a priority that i ndividual countries be encouraged to commit themselves 
to making better use of multilateral institutions.  That  is why the latter had been created.  However, 
there was also a responsibility for sustained and e ffective leadership by the heads of multilateral 
institutions, and a need for them to combine the small picture with the larger global picture.  
Strengthening multilateralism was a key priority.  In stitutions needed to link their individual mandates 
to the broader global mandate. 
124. The non-discriminatory rules-based multilateral tr ading system had made vital contributions 
in the past half century.  The WTO worked and w as effective, but Members had to strengthen and 
improve it.  She wished to express her gratitude to  the Director-General for establishing the group of 
wise men who had produced a report on how the or ganization could be strengthened.  Their report 
merited careful study.  Members had already given th eir initial reaction.  Collectively, they needed to 
pursue this dialogue and seek results, where possible, to strengthen the organization, particularly in 
respect of the Secretariat.  The Secretariat had been  a solid and reliable anchor for the organization, 
but now Members needed to make sure that its se nior managers merited re cruitment and were well 
placed for the right jobs, and that its human resour ces were better and more efficiently and rationally 
deployed.  An immediate priority was the selecti on of the next Director-General.  Of the four 
candidates, only one could be selected.  Members could neither allow this process to become a 
distraction, nor afford to dedicate more time to it than was necessary.  Their substantive preoccupation 
had to remain the preparations for the Hong Kong Ministerial. 
125. Her commitment to consensus-based decision- making was absolute.  This had been the 
practice of the organization, and she intended to maintain it.  Although some felt this was the 
organization's weakness, to her it was its strength, notwithstanding the frustrations it could generate.  
The organization would again be put to the test in 2005 in several areas on account of consensus decision-making.  However, one might think of this in the way that Magnus  thought of related issues 
in his discussions with Orinthia in George Bernar d Shaw’s "The Apple Cart", in which Magnus says 
to Orinthia:   "Well, what more can you ask?  Do not let us fall into the common mistake of expecting 
to become one flesh and one spirit.  Every star  has its own orbit; and between it and its nearest 
neighbour there is not only a powerful attraction but  an infinite distance.   When the attraction 
becomes stronger than the distance the two do not embr ace; they crash together in ruin.  We two also 
have our orbits and must keep our distance between  us to avoid a disastrous collision.  Keeping our 
distance is the whole secret of good manners; and wi thout good manners, human society is intolerable 
and impossible".  The point of this was that balance,  respect for the vital, and only the vital, interests 
of Members in the system of consensus-based d ecision-making was critical if Members were, in the 
words of Magnus to Orinthia, not "to crash together in ruin", and if they were to "avoid a disastrous 
collision".  Members needed to participate fully in and support the work of the TNC.  She wished to 
pay tribute to the Director-General for what he ha d achieved and for his continuous efforts.  She was 
committed to working in close cooperation with the Director-General and with whomever his 
successor would be.  Members also needed to s upport the Chairpersons of WTO standing bodies and 
negotiating groups.  Regional groups  had an impact on the functioning of the multilateral trading 
system.  She would maintain contact with a nd consult Chairpersons of standing bodies and 
negotiating groups, as well as coordi nators of regional groupings. 
126.
 In conclusion, she wished to emphasize the n eed for speed in respect of the tasks and 
challenges ahead.  The current signals and reports were positive, but there was still much to do.  
Members needed to change gears and to improve their play in several areas as they prepared for Hong 
Kong, China.  Formal and informal consultations  among Ambassadors, senior officials and Ministers  WT/GC/M/92 
 Page 27 
 
 
 would remain part of the preparatory efforts.  Ho wever, she wished to assure Members that decisions 
would only be taken by the entire membership.  The Director General and she would ensure full 
participation and transparency of results in me etings and consultations , while understanding that 
different mechanisms, arrangements and formats woul d be used to serve the larger interests and 
priorities of the organization.  She again wished to  thank Members, her colleagues and friends for the 
honour of being elected Chairman of the General council for 2005.  She wished to thank the African 
Group for nominating her, and to pay tribute to th e coordinator of that Group for his leadership, 
encouragement and wisdom.  She wished to thank her friends in the Secretariat.  Last, but not least, 
she wished to thank her colleagues and especially her husband, for his support and friendship.  She 
pledged to do her best, and with Members' support, was confident that the DDA could be significantly 
advanced. 
127. The representative of Rwanda , on behalf of the African Group , expressed the Group's 
appreciation and satisfaction to see the incoming Chairm an in the Chair.  To the outgoing Chair, the 
Group wished to support the ovation he had received earlier.  That ovation conveyed the African Group's appreciation for all his efforts, which had en abled Members to achieve substantial results, not 
the least of which was the July 2004 package.  The African Group was very grateful for this result, 
and wished the outgoing Chair every success in his fu ture career.  The African Group was also very 
proud to have produced the first lady Chair of th e General Council through the appointment of the 
incoming Chair.  Her impressive track record, her dedication and devotion to the multilateral trading 
system, her experience and excellent knowledge of the WTO, as well as her leadership and diplomacy 
abilities would immensely contribute to the success of  this organization and the completion of the 
DDA.  The African Group wished to  express its warmest congratulations on her election as Chairman 
of the General Council and assured her of  its full support and co-operation. 
128. The representative of Nigeria
 fully supported the statement by Rwanda on behalf of the 
African Group.  His delegation joined in the gratit ude to the outgoing Chair, the Director-General and 
other outgoing Chairs, as well as the Chairs of th e negotiating groups for their hard work and the 
smooth running of the WTO.  The hard work of the outgoing Chair and of all the WTO officers had 
resulted in the successful completion of the July 20 04 package.  This had been due to the outgoing 
Chair's dedication and firmness.  That success had helped to keep the WTO and the DDA afloat.  
Nigeria fully supported the incoming Chair's elect ion to the General Council Chair for the coming 
year, and believed that she would lead the or ganization through the challenging periods ahead, 
including the appointment of the next Director-General and preparations for the Hong Kong 
Ministerial.  Nigeria congratulated her and the ot her colleagues who had been elected to chair WTO 
bodies.  The incoming Chair's election was a big challenge to Africa, and particularly to African women.  His delegation was sure that she was fully  qualified to tackle the responsibilities the General 
Council had entrusted to her.  He recalled that in  2005, Africa had decided to advance its trade and 
development efforts in the WTO through three re markable women:  the incoming Chair, the 
coordinator of the African Group, and the Perman ent Representative of Egypt.  Nigeria hoped that 
these women would make the men proud and Africa  proud.  His delegation assured the incoming 
Chair and all the other new officers of its full supp ort, as they worked with Members to make the 
Hong Kong Ministerial and the WTO agenda a success. 
129. The representative of Zambia
, on behalf of the LDCs , said that the LDCs fully endorsed the 
slate of names of the new officers of WTO bodies that  had been communicated at the present meeting.  
The LDCs had no doubt that these incoming Chairper sons would discharge their responsibilities with 
as much diligence as had their predeces sors.  On the election of the Chairman of the General Council, 
it was with great pleasure that the LDCs welcom ed the incoming Chair's appointment for 2005.  It 
was their strong conviction that with her cheerfu l and pleasant personality and outstanding dedication 
to the development agenda of this Round, the incoming Chair would steer the membership to a 
successful outcome in Hong Kong, China.  The LDCs  also wished to pay a special tribute to the 
outgoing General Council Chair and the outgoing Ch airs of other WTO bodies for the professional WT/GC/M/92 
Page 28  
 
 manner in which they had conducted the business of  the organization.  The LDCs assured the 
incoming Chair of their continued commitment and cooperation.  
130. The representative of Benin
, on behalf of the ACP countries , conveyed these countries' 
congratulations and gratitude to the outgoing Chai r for the remarkable work he and his team had 
carried out during his mandate, which had begun afte r the Cancún Ministerial Conference.  Thanks to 
his determination, his ability, his careful handling, an d his availability at all times, he had been able to 
lead the negotiating programme sinc e Cancún up to the present time, a nd thanks to him, Members had 
been able to achieve some impressive results in July, which they now had in the form of the July 
framework agreements.  The ACP countries wished him every success in his future career, much 
happiness at home, and a safe return to his country or  to whatever post he might be taking up.  They 
welcomed the incoming Chair's election to the Chai rmanship of the General Council, and assured her 
of their full support in carrying out her work.  The ACP countries knew how committed the incoming 
Chair was, and of her constant search for a consensu s and her ability to maintain contact with all the 
different Members of the organization.  They were sure that under her leadership and with her easy 
touch, Members would be able to go through the different phases of the negotiating programme. 
131. The representative of Argentina , on behalf of GRULAC , expressed these countries' gratitude 
to the outgoing Chair for his many endeavours in the course of his term of office as Chairman of the 
General Council.  The latter had constantly dem onstrated a sense of balance and discretion, and 
Argentina  hoped that his future would be as brilliant  and fruitful as his tenure at the WTO had been.  
GRULAC also wished to express gratitude to all who had served in the course of 2004 as Chairs of 
the various WTO bodies, and to the African Grou p for having selected the incoming Chair as the 
General Council Chair for 2005.  GRULAC knew that  she would provide a very special personal 
touch, and would help Members carry through their work in the course of the year to culminate at the Hong Kong Ministerial Conference. 
132. The representative of Morocco
 associated his delegation with the statement by Rwanda on 
behalf of the African Group.  Morocco wished to  congratulate the outgoing Chair and to express its 
gratitude for the way he had led Members during hi s chairmanship of the General Council – for his 
tact and for enabling the adoption of the July 2004 package.  To the incoming Chair, his delegation 
wished to convey its warm and personal congratulati ons, and assure her if its full support in carrying 
out her tasks.  It was an honour for the African c ontinent to see her presiding over this assembly, and 
an honour for all African women she represented.  Under her chairmanship, Morocco was sure that 
the work would gain a new impetus and a new momentum, and there was no doubt that in carrying 
out her responsibilities – which were by no mean s easy or light – both he r human and professional 
qualities would enable her to lead Members into a safe harbour.  The current phase Members were 
undertaking was crucial.  The upcoming July and D ecember phases were very important benchmarks 
moving towards results from the Doha Round.  Moro cco wanted to achieve balanced results that 
would reflect the interests of all parties, taking into consideration the interests of the developing 
countries as well.  The incoming Chair's diplomatic skills, her handling of all the technical issues and 
her international background would help her to meet the interests of all Members.  His delegation 
fully supported her Chairmanship and was read y to give her its fu ll support and cooperation 
throughout her term. 
133. The representative of Singapore , on behalf of the ASEAN Members , extend these countries' 
gratitude and appreciation to the outgoing Chair fo r his very hard work and for his distinguished, 
patient, dedicated and business-like leadership of the General Council over the past twelve months.  In 
particular, the ASEAN Members recognized and commended the outgoing Chair for his leadership 
role in advancing the DDA process through the July package in 2004, and wished him all the best in 
his future endeavours.  The ASEAN Members ex tended their warmest congratulations to the 
incoming Chair.  They had every confidence in he r leadership and thought it a fitting tribute, and 
appropriate, that in this concluding phase of the Doha Development Round, Members had in the Chair  WT/GC/M/92 
 Page 29 
 
 
 someone from the developing world, someone fr om Africa, someone from Kenya and, most 
appropriately, a woman.  This was most appropria te because the outgoing Chair had referred to the 
July 2004 package as a child that he had helped to deliver – he had been the mid-wife.  The child was 
in need of nurturing, so that th e July package could grow into a balanced package in time for Hong 
Kong, China and the ASEAN Members had every c onfidence that the incoming Chair would rise to 
the occasion. 
134. The representative of Kenya  congratulated the incoming Chair for her well-deserved 
appointment as General Council Chair for 2005.  Ke nya was convinced that her strong leadership 
qualities and deep commitment to the multilateral trading system would significantly contribute to the attainment of the objectives of the organization.  His delegation wished to assure her of its full and 
enthusiastic support.  She was assuming the Chair in a critical year when the organization was going 
through the process of selecting a new Director-Gener al and preparing for the Hong Kong Ministerial 
Conference, which was expected to endorse key deci sions setting the platform for the final phase of 
the Doha negotiations.  This was no mean task, a nd his delegation would cooperate and work closely 
with her to ensure success.  For those who mi ght not know the qualities the incoming Chair brought to 
the Council, he would only summarize these as expe rienced visionary leadership, a gift of genuine 
and devoted conviction to the dive rse, dynamic and growing WTO.  Hi s delegation also wished to pay 
tribute to the outgoing Chair, who had brought to the Council strong personal contacts, a great respect for WTO's accomplishments, and the drive that had made the organization achieve its potential.  The 
latter's personal involvement in the July 2004  process had led to a major achievement in the 
organization that was now guiding Members' work.  Kenya wished him success and happiness in his 
future endeavours. 
135. The representative of Barbados
, on behalf of the CARICOM Group , thanked the outgoing 
Chair for his outstanding contribution to the work of the organization over the past year.  These countries, like others, had admired his quiet, honest human style, which carried a very focussed determination to deliver results, which he had certainly done.  Th ey welcomed the incoming Chair 
and pledged their full support as Members moved into yet another difficult year. 
136. The representative of India
 thanked the outgoing Chair for his wisdom, his sagacity and his 
sense of fair play.  He had led Members with great dexterity, leadership and skill.  India wished him 
success and good fortune in his new assignment.  Hi s delegation added its voice to the expressions of 
congratulations and welcome to the incoming Chai r, whose election emphasised the fact that the 
WTO was a fully representative organization and that it recognized merit.  Needless to say, she would 
have his delegation's full support in the challenging days ahead. 
137. The representative of Djibouti  expressed his delegation's gratit ude to the outgoing Chair, the 
Director-General and all those who had worked on hi s team.  It was thanks to that team that the 
July 2004 package had been established ,and Members ha d to continue to work on it until there were 
satisfactory results for all.  The outgoing Chair had sa id earlier that a child had been born in July.  It 
was now for the incoming Chair, together with Memb ers, to bring this child up until it could walk on 
its own.  Djibouti warmly welcomed her election to  the Chairmanship of the General Council, and 
was grateful to the Members who had selected her.  This showed that although Africa might not be a heavyweight in world trade, it nonetheless knew the ro le it played on the world scene.  It also showed 
that Africa had the determination, despite its very slig ht share of world trade, to be integrated into the 
multilateral trading system.  It was thanks to th e African Group having chosen the incoming Chair, 
that Members had seen this determination pers onified.  There was a good reason the African Group 
had chosen a woman.  It was the first time in the WTO that Africa – often referred to as a poor 
continent – had chosen a woman for the Chair of one of the highest bodies of the organization.  It was a singular honour not only for Africa, and not only for Kenya and its government, but indeed for the whole of the continent.  Djibouti was sure that a y ear hence, the Chair would see that all Members had 
given her their full support up to the end of he r mandate, regardless of the results achieved. WT/GC/M/92 
Page 30  
 
 138. The representative of Egypt
 associated his delegation with th e statement by Rwanda on behalf 
of the African Group expressing appreciation to th e outgoing Chairs of the various WTO bodies for 
their very dedicated work.  Egypt also wished to  commend and to express its deep appreciation to the 
outgoing Chair of the General Council for his able ch airmanship and for his significant contributions 
regarding the success of the July package.  Egypt also wished to welcome the incoming Chair, and 
agreed with Kenya concerning her qualities.  His delegation assured her of its full support in her 
challenging role, and of Egypt's commitment to coop erate with her in the most constructive manner. 
139. The representative of Jamaica  joined in extending the warmest congratulations to the 
incoming Chair on her assumption of the post.  Jamai ca also associated fully with the statement by 
Argentina on behalf of GRULAC.  The unanimous  support that had attended the incoming Chair's 
elevation to this high post was a tribute to her dipl omatic skills, to her qualities of leadership, and to 
the energy she had demonstrated in all posts dur ing her tenure at the WTO.  Given the important 
challenges that lay ahead in 2005, her abundant skills would be fully tested, but Jamaica knew of no better person in whom to put trust and confidence in  the challenging year ahead.  She could be assured 
of the fullest cooperation of his delegation in all ma tters.  He also wished to join publicly in the 
tributes paid to the outgoing Chair, whose mann er of departure at the present meeting was as 
professional and as business-like as his stewardship had been all year. 
140. The representative of Honduras
 supported the statement by Ar gentina on behalf of GRULAC 
and associated his delegation with all those who ha d welcomed the incoming Chair.  For Honduras, it 
was indeed a great honour to see the incoming Chair at the helm of the General Council.  Honduras knew her ability and her great wisdom, and was sure  this would be an important year for the 
organization.  She could count on Honduras in all r espects.  His delegation also wished to thank the 
outgoing Chair for the excellent work he had done, and would not forget his leadership in the course 
of his tenure as Chair.  Honduras wished him good fortune and every success. 
141. The representative of Senegal
 thanked the outgoing Chair.  All delegations had praised his 
qualities as Chairman of the Council, and Senegal wi shed to endorse the unanimous tribute paid to 
him.  Senegal had also been much surprised by  the outgoing Chair, because he had shown at the 
present meeting that he was moved and touched.  No doubt, he had been equally touched throughout 
the year, but his competence and dedication to his t ask had been very focussed .  Senegal also wished 
to thank the outgoing Chair for his having laid emphasis on an important couple – trade and development.  This was a signal he had given Memb ers before leaving.  It was a message to the 
Council, and all should take this in to consideration.  As for the incoming Chair, the reasons she had 
been elected were obvious.  Not only was she charming,  but all agreed that at the present stage, she 
would be one of the most competent Chairmen to  guide the General Council.   Her intimate knowledge 
of the rules had been clearly demonstrated in her statement of general policy,  and he was sure that 
everyone would retain that statement, which pe rhaps should constitute a roadmap for the year to 
come.  It was only right that she should have been  elevated to the Chairmanship of the General 
Council, because she represented a country that had always been committed to the cause of 
liberalization on the international scene.  He fully  associated his delegation with the statement by 
Rwanda on behalf of the African Group, congra tulated the incoming Chair, and assured her of 
Senegal's full support in the arduous task that awa ited her.  That task awaited all Members, and 
Senegal appealed to all to give her their full support, so that the confidence placed in her would be 
fully enjoyed by all. 
142. The representative of  Tanzania
, also on behalf of Uganda , associated these delegations with 
the statements by Rwanda on behalf of the Afri can Group and by Zambia on behalf of the LDCs.  
They congratulated the incoming Ch air on the assumption of this prestigious position, which was an 
honour to East Africa, and wished her well.  They had the greatest confidence in her ability to lead the 
work of the General Council to greater heights.  He r array of qualities had already been highlighted by 
many speakers, and he could only say that the D DA could not have found be tter hands, as Members  WT/GC/M/92 
 Page 31 
 
 
 worked towards the Hong Kong Ministerial.  These de legations also joined those who had paid tribute 
to the outstanding work done by the outgoing Chair.   The latter's exemplary work and personal 
qualities would leave indelible memories.  They wish ed him a successful and enjoyable career in the 
future. 
143. The representative Oman  expressed appreciation to the outgoing Chair for his work and 
patience, and wished him all success and good luck.  As a woman, she thought it was important for 
her to congratulate the incoming Chair for being elected as the first woman Chairperson of the 
General Council, and to express Oman's full support for her.  Her delegation wished the incoming 
Chair all success, and was keeping its eyes open to the Director-General's position next. 
144. The representative of Cuba  said that, as a woman, a representative of a developing country 
and a Latin American, it was an honour to have the incoming Chair guiding Members, through the 
latter's experience and ability, in view of all the work  that lay ahead.  José Martí, who was the father 
of Cuba's independence, had said that no work was complete without the hand of a woman.  She, as a 
Cuban and as a follower of these ideals, was persona lly convinced that under the incoming Chair's 
leadership, Members would reach a safe harbour and attain the objectives the membership hoped to 
attain through the current negotia tions and, above all, that th is process would help reduce the 
inequalities and poverty that still existed in the wo rld – which was the best goal any human being 
could set for himself.  Cuba wished the incoming Chair happiness, and assured her of its humble cooperation. 
145. The General Council took note
 of the statements. WT/GC/M/92 
Page 32  
 
 ANNEX 1
 
 
Statement by Rwanda on behalf of the African Group  
at the meeting of the TNC held on 14 February 200510 
 
 
 The representative of Rwanda , on behalf of the African Group , said that given that, Members 
were faced with enormous tasks ahead, they could consider having additiona l TNC meetings, in order 
to continue taking stock of the progress and gui ding the negotiations.  All Members bore a huge 
responsibility in ensuring the success of the Hong Kong Ministerial Conference and in delivering 
benefits to their people in terms of improved ec onomic and social welfare, which was the ultimate 
goal of the Doha Round. In that regard, the A frican Group was ready and remained committed to 
working very closely with the Chairman and th e Chairpersons of the Negotiating bodies.  All 
Members needed to be engaged in a constructive spir it in order to make progress in the negotiations 
and achieve the objectives of the Doha Development Round. 
 
 She noted that many informal mini-Ministerial  meetings were already scheduled in various 
parts of the world and said the African Group welcom ed the good will of Ministers to be regularly 
involved at the political level.  The Group believed that the involvement of Ministers would positively 
influence and advance the Geneva process, for in stance by making political decisions such as "a 
credible end date for export subsidies".  The A frican Group therefore welcomed more Ministerial 
contacts at regular intervals to consider a number of issues which would guide delegations. 
  She stressed the need for transp arency and inclusiveness in order to ensure the participation 
and ownership of the process by all Members.  Equa lly the issue of parallel meetings was of great 
concern to small delegations, as their limited capacity affected their ability to attend all meetings. This 
was a very serious issue that should be addressed. 
  This being a development round,  any success would be measured by the extent to which the 
outcomes would be development-oriented.  Accordi ngly, for the African group "first approximation" 
equalled "fair approximation" and this  had to be in conformity with  the Doha mandate, and responsive 
to their needs and interests. 
 
 On Agriculture, she said the Group aimed to achieve substantial progress in the discussion on 
issues of interest to it such as the treatment of  NFIDCs, exemptions of LDCs, SP/SSM, preference 
erosion, the treatment of food aid and greater mark et access for African agricultural products.  Since 
last July, the discussions in the Special Session of Agriculture had been technical in nature, and the 
Group hoped those discussions would translate into positive outcomes.  One should recall  that the 
objective of modalities by Hong Kong required subs tantial progress in technical discussions, in a 
manner which accorded special priority to th e issues of interest to the African Group. 
  On the issue of cotton, the Group wished to re-affirm its view that discussions in the Sub-
Committee on Cotton had to take into account both th e trade and development aspects, and also had to 
find an early solution to the cotton initiative including the drastic decline of prices.   
  Regarding NAMA, she said the view of the Afri can Group was that the formula that would be 
agreed upon had to include S&D treatment, and the principle of less than full reciprocity among other 
elements.  Furthermore solutions ha d to be found within the WTO for countries that would be affected 
by preference erosion.  Similarly, NTBs had to be given more attention in the NAMA negotiations, as 
they had become huge barriers to market access. 
                                                     
 
10 Included in the records of the present meeting under Item 5 at the request of the delegation of 
Rwanda.  WT/GC/M/92 
 Page 33 
 
 
  
 Turning to the Services negotiations,  the A frican Group continued to look forward to more 
offers which took into consideration the interest s of developing countries, such as in Mode 4, 
professional services, construction and tourism.  The Group hoped to achieve more commercially 
meaningful S&D treatment which would help this gr oup of countries, particul arly the least developed 
of them to address some of the challenges they f aced in services trade. In that respect, Members had 
to commit themselves to operationalize Article IV of GATS.  She expressed the Group's desire to have more discussions and proposals on how to ensu re that developing countries received targeted 
technical assistance as envisaged in Annex C of the July 2004 Decision  
 The African Group wished to underscore the n eed for Members to intensify their efforts on 
development-related issues without  any further delay.  This was another measure which would gauge 
the success of the DDA.  The Group was disappointed  at the very slow progress made, both on S&D 
and implementation-related issues, a nd hoped that earlier pledges would be translated into reality.  For 
example, the Group wanted to see an early completi on of the amendment of the TRIPS Agreement to 
incorporate the 30th  August 2003 Decision on TRIPS and Public Health. 
  The Group hoped work in the Special Session of the Committee of Trade and Development would focus on achieving progress on the Agreement- specific proposals.  It should be recalled that 
making S&D more precise, effective and operational w as one of the main goals of the negotiations.  
After the previously missed deadlines, Members needed to deliver by July this year, the date set out in 
the July Decision. 
  On Trade Facilitation, the Group had observed th at the negotiations were moving very fast, 
with a danger that some countries would be left be hind.  Therefore it wished  to emphasize the need 
for more in-depth technical assistance from the early stages of the negotiations, so that Members 
could continuously gauge what their needs and priorities were.  The Group called upon Members who 
made proposals to assist the Group's members by accompanying each proposal, where necessary, with 
specific cost implications both in terms of financia l and institutional needs.  The Group also wished to 
emphasize that each proposal brought to the table had to come with precise and meaningful S&D 
treatment for developing and least-developed countries as that was an integral part of the Trade 
Facilitation negotiations. WT/GC/M/92 
Page 34  
 
 ANNEX 2
 
 
Statement by Benin on behalf of the ACP Group  
at the meeting of the TNC held on 14 February 200511 
 
 
 The representative of Benin , on behalf of the ACP Group , associated the Group with the 
statements by Rwanda on behalf of the African Grou p and Zambia on behalf of the LDCs.  The year 
2005 would see a very important stage in the long path of the Doha Round, which was the Sixth 
Ministerial Conference at the end of the year in Ho ng Kong, China.  In order to make this decisive 
event a success, Members needed to  work unstintingly to intensify the technical work and the search 
for positive agreements in the preparatory phase whic h was starting with the present meeting.  In the 
context of the enormous amount of technical wo rk going on in the various negotiating bodies, he 
wished to give the ACP's views on the evolution of this work.  
 On agriculture, the Group believed that the work of the past week had been very useful.  It 
had enabled participants to focus on one of the mo st crucial issues for the ACP Group which was the 
question of preferences.  In the July 2004 frame work, paragraph 44 had recognized the importance of 
long-standing preferences and had established a framewo rk for dealing with this matter.  It was now 
accepted by the majority of the Members, who had rep eatedly stated that the result of the negotiations 
should not lead to the distress or the disappearance of certain agricultural systems.  This implied a 
higher level of understanding from all partners for the concerns about  preferences, which remained a 
central issue for countries in the ACP Group.  The ag ricultural negotiations of the previous week had 
shown that a number of Members and other groups were favourable to a pr actical solution in this area.  
The ACP Group was willing to have a constructive ex change of views on this with all Members in 
future technical meetings. 
 
 In the work on cotton, Members should mainta in their current impetus and engagement to 
find appropriate solutions to this important ques tion.  The first meeting of the Sub-Committee on 
Cotton would take place on 16 February, and the wo rk should lead to ambitious, expeditious and 
specific solutions.  The ACP cotton producers were f acing distortive trade practices, the consequences 
of which were a severe fall in the price of co tton, the disappearance of cotton production and an 
automatic alienation of small farmers.  It was t hus more than ever necessary to establish a Special 
Emergency Fund to allow ACP cotton-producing Stat es to meet the problems faced by their small 
farmers, whose competitiveness through reduced costs w as being wiped out by the effect of subsidies.  
The ACP Group counted on support from all Members in this work.  
 On NAMA, the Group agreed with the Ch airman of the Negotiating Group that the 
negotiating sessions in March and Ma y 2005 would be decisive if Members wanted to have an initial 
outline of modalities by July 2005 on the basis of wh ich a decision would be take in Hong Kong.  The 
Group hoped the different efforts which would be ma de to give political input to these negotiations 
would be transparent and inclusive.  The essentia l concerns of the Group in these negotiations were 
well known.  The principle of less than full reciprocity, as well as S&D Treatment, could furnish 
essential elements for the work.  Paragraph 16 of A nnex B of the July 2004 Framework requested the 
Negotiating Group to take into consideration, in the course of its work, the particular needs that might 
arise for the Members concerned because of the ch allenges that might be faced by non-reciprocal 
preference beneficiary Members.  In this technical  phase of work, the Group was aware of the need to 
table specific proposals.  Some Members had stated  that addressing the erosion of preferences would 
hold up the process of reducing tariffs and interrupt tr ade liberalization.  It was also the case that small 
vulnerable economies which had small market sh ares because of preferential access, would be 
                                                     
 
11 Included in the records of the pr esent meeting under Item 5 at the re quest of the delegation of Benin. 
  WT/GC/M/92 
 Page 35 
 
 
 destabilized by the application of a MFN tari ff to all developing countries benefiting from 
preferences.  In order not to compromise interna tional trade liberalization, the Group suggested an 
approach concerning preferences applied to a list of  well identified products.  This was a pragmatic 
approach which the Group would promote in the NAMA negotiations.  
 Turning to Trade Facilitation, he said the wo rk of the Negotiating Group the previous week 
had enabled progress to be made through a better understanding of the aims and problems of the 
Group's member States, who had spoken quite clearly on the subject.  It was clear to the Group that 
these negotiations concerned mainly Articles V, VIII and X of GATT 1994.  Moreover, the S&D 
Treatment which the Group's Members needed should not be limited exclusively to longer transition 
periods.  Targeted technical assistance and capacity  building would enable the Group's members to 
better assess their needs to prepare for the adjustment of infrastruct ures and to implement the results 
of the negotiations.  Financial support from donors was more necessary than ever in order to carry out 
these assessments and identify the flex ibilities required by their economies. 
 
 In the area of Services, the deadline of Ma y 2005 was important for many of the Group's 
members.  However, their lack of technical capacitie s, together with the various constraints that these 
negotiations contain, had complicated progress in th is area.  Several Group members needed technical 
assistance in order to submit their revised offers an d become more proactive in the negotiations.  The 
Group believed, however, that progressive liberali zation which took into account its members' 
specific constraints and levels of developmen t should guide the continuation of the work. 
 
 The ACP Group was very concerned at the progress in the review of S&D Treatment.  The Group wished to reiterate its hope to see all Me mbers become fully engaged so that the re-
examination of all of the pending proposals on specif ic agreements could be undertaken by the July 
2005 deadline.  The Group believed that the July 2004 Decision had clearly defined the parameters for 
progress in this area.  The Group appreciated the ef forts undertaken by the Chairman of the Special 
Session in his contacts with the Chairpersons of othe r bodies in order to move the work forward.  The 
Group supported his approach of examining the proposals by the LDC Group as a priority.  Endowing the WTO architecture with precise, effective and ope rational S&D provisions rules which also had an 
economic value was essential to letting the ACP count ries be fully integrated into the multilateral 
trading system. 
 
 The ACP Group was paying considerable attenti on to the evolution of the rules negotiations 
in general and would continue to support the effo rts of the negotiating group Chairmen.  Turning to 
the preparatory process for the Ministerial Conference  in Hong Kong, he said that several Ministerial 
gatherings were foreseen in the near future.  The ACP Group would like the process to be more 
inclusive and transparent in order to take better acco unt of its concerns and needs.  The impetus given 
to the negotiations by these meetings was of interest to all of the Group's members.  The Group wished to express its determination to work positivel y toward progress in the negotiations as a whole 
so that the results in Hong Kong would be balanced and faithful to the development label of the Doha 
Round. WT/GC/M/92 
Page 36  
 
 ANNEX 3
 
 
Statement by Zambia on behalf of the LDCs  
at the meeting of the TNC held on 14 February 200512 
 
 
 The representative of Zambia , on behalf of the LDC Group , said the Group remained 
committed to working with the Chairman in order to ensure that the Work  Programme was followed 
successfully and that it was in line with the ma ndates of the Marrakesh Agreement, the Doha 
Ministerial Declaration and the July Decision.  The Group hoped that Members would be able to 
strike a deal by July on most key areas, especia lly in NAMA and Agriculture, taking into account the 
developmental aspects for the benefit of developing countries, especially the LDCs.  The urgency and 
the importance of these aspects of the Doha Development Round could therefore not be over 
emphasized.  As it had previously stated, the Group believed that the goodwill and spirit of 
engagement demonstrated by all Members would lead to a positive outcome from the first 
approximation. 
  The LDC Group would liaise with the Chairper sons of negotiating bodies regarding issues of 
specific interest to it which had been  raised in their reports, with a vi ew to putting those issues in their 
proper perspective in terms of prio ritization and emphasis.  In this regard, the Group had taken note of 
the proposal made by the Chairman of the Servi ces negotiations.  The Group wished to express its 
appreciation to all Members for their continued supp ort for the LDCs and trusted that everyone would 
strive to make the Doha Development Round a r eal development round for developing countries and 
in particular for the LDCs.  Finally, the Group s upported the statement by Rwanda on behalf of the 
African Group.  
 
__________ 
 
 
                                                     
 
12 Included in the records of the present meeting under Item 5 at the request of the delegation of 
Zambia.